I retired at the age of 52 after sitting down with a financial planner and realizing I have enough saved up for a current lifestyle spending.
Through the next 5 years, I’ve seen my yearly expenses vary and realized that the unexpected runaway inflation in the last two years has made it difficult to stay on my annual budget.
In my city, groceries and food has gone up 15% to 50% from 2020 to 2023 while gas prices have stayed at $4 to $4.50 a gallon from 2021 to 2023. Even when the official CPI numbers show a lower inflation rate this year, I haven’t seen housing, food, gas and other consumer staples go down in price.
Many of the retirement calculators assume a 3% inflation rate but that’s based on the average BLS number for CPI.
It seems to me, we need a more realistic inflation rate for calculating our retirement expenses.
Has anyone found a better method than using the CPI?
Has anyone felt the need to go back to work full-time due to the unexpected increases in their monthly expenses?