When most executives plan for retirement, they focus on things like asset allocation, tax efficiency, and healthcare. But there’s a silent risk that can quietly derail even the best-laid plans: inflation.
For high-net-worth individuals, inflation doesn’t just mean higher prices at the grocery store. It affects travel plans, property taxes, healthcare expenses, and charitable giving. Even at modest levels, inflation can erode purchasing power significantly over a 20- to 30-year retirement.
The Real Impact
A $250,000 lifestyle today could cost over $450,000 in 25 years with just 2.5% annual inflation. That’s why Wealthvisory incorporates inflation-adjusted projections as part of the SmartMethod™ process.
Protecting Your Plan
- Allocate assets to include growth investments like equities.
- Reassess insurance coverage for long-term care and medical inflation.
- Review your withdrawal strategy regularly.
Don’t Underestimate Longevity
With medical advances and healthier lifestyles, many retirees will spend 30+ years in retirement. This amplifies the impact of inflation, making it critical to build plans that anticipate your needs decades from now—not just at age 65.
Staying Ahead of the Curve
Retirement isn’t just about reaching a number—it’s about maintaining a lifestyle. The SmartMethod™ ensures that your plan keeps pace with life’s rising costs so you can enjoy the retirement you’ve earned.
