The majority of Americans don’t think they are saving enough and are worried their savings won’t last as long as they do.
Only 31 percent of workers who participate in an employer-sponsored retirement plan, such as a 401k, 403b or 457, are “extremely confident” or “very confident” that they will not outlive their money — and the rest aren’t so sure, according to a survey by BlackRock.
If you’re worried, take these three steps to make sure you don’t run out of money in retirement.
1. Be Ready for Inflation
Prices have more than doubled in the last 30 years. As a new report from Wells Fargo Investment Institute points out: “Today, you need more than twice the number of dollars you would have needed in 1985 to buy the same amount of goods and services — despite relatively modest inflation during that time.”
Historically, U.S. consumers have seen price increases of about 3 percent a year. Using that figure as your guide, plan on having double the amount of money you have today to maintain the same standard of living in 20 years.