par simplesoul » 10 nov. 2012 18:14

inflation is one of the biggest risk one has in terms of the quality of life one will have going forward.

if one needs 1500 euros for monthly expenses currently and with an inflation of 3%,
that means that in 20 years one would need 3000 euros monthly.

for the young people out there in their 20s, going forward, how would their retirement 'risks' be like if not addressed!

we can fairly say, with the increase in retirement age(can't see it going lower), with an average inflation of 3%, a young person today with expenses of 1500 euros would need 6000 euros per month 40 years from now just for monthly expenses.

this comes to about 72,000 euros a year. think about it. life is becoming more expensive by day.

note: the average inflation in France since 1958 is about 4.8%. today (officially just below 2%) if the basket of goods used for calculation confers with your daily lifestyle.

so how would you plan for your retirement?
those who avoid thinking about this naturally accepts this 'risk'.
are you responsible for your retirement or are you taking it head on?

what other risks are there in the investment world?