“Lifestyle creep” can derail retirements

Catherine Brock reports on the newest trend keeping people from having adequate savings in retirement.  It’s called “Lifestyle Creep.”  In short it involves spending more money as you make more money.  Doing that prevents people from getting ahead as they forgo saving for retirement.  Social Security alone will never cut it, as it was never designed as a sole income for retirees.  Benefits replace a scant 40% of pre-retirement income.  As Brock states, “The problem arises when we don’t draw the line on upward mobility. When your tastes keep growing indefinitely, a six-figure income feels as tight as a minimum-wage paycheck.”  She suggests setting a budget, banking your raises, and planning out lifestyle upgrades.  Read the full article from The Motley Fool here.

The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.



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