Inflation - Reworking Retirement Planning

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The main concern for Retirees where inflation is concerned is that how it affects their purchasing
power. This is true even when inflation remains low because Seniors are more likely to spend money
on things that tends to increase in price such as Healthcare. Inflation is something people are not thinking on regular basis, but it has significant influence on their financial lives. Not only does inflation effects the prices of consumer goods, Govt. also uses it as a benchmark to determine whether to increase contribution limits to qualified Retirement plans or raise monthly social security benefits.

Over a period of time, inflation can take a serious bite on Retirement savings by diminishing
Retiree's purchasing powers. Inflation can be retirement killer but it does not have to be for
Seniors who take time to develop a plan for combating it. Reducing spending, creating a realistic retirement budget and leveraging investments to take advance of price increases can together help
to soften the blow inflation may deal to long-term savings.

Due to increased life expectancy, with people living 20 to 25 years, even more, after retirement, it is
imperative to ensure that finances are in good shape. Starting early Savings has many advantages. Money gets more time to grow and each gain generates further returns. People who start saving late
miss out the benefit of compounding of income generation.

There are more Saving schemes existing for the retired people at present. A new thrust is explained hereunder to be considered for implementation -

In order to exercise control on inflation, Govt. may consider implementing 'Fixed Price Policy' regime  of Goods and Services, in a phased manner, which will be beneficial to People, Business
and Govt.
1) People in general, (both working and retired) will be able to get goods at a fixed price. Their will be a boost in demand in case the prices are fixed for certain period. This will help a lot in managing their family budgets, plan savings and settled life style.

2) Business - Manufacturers will be able to assess the Consumers' demand and execute production plans in a systematic manner. They can fix prices and display them to be remained as fixed for a certain period. By keeping prices fixed for a certain will help public a lot since the demand gets regulated. This will create more jobs, production, exports of goods also. Govt. may consider subsidizing the industry as well on selective basis.

3) Govt. will get more tax revenue and earn more foreign exchange due to increased industrial activities.  

In addition, Insurance sector should change the policy of charging less premium to Senior citizens
rather than charging at higher rates (prevalent now) to bring reforms in social service sector to the concerned retired public.
     
                                                        ---------------------------

                                                                 

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