When you read retirement articles in the U.S., financial experts tend to repeat the same advice over and over:
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Withdraw about 4% of your retirement savings each year
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Aim to save 10 years’ worth of your annual income
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Because of inflation, you must save more—and keep saving
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And sometimes they even say, “Most people should be ready to work forever (half-joking)”
Now that I’m approaching that stage of life myself, I’ve started calculating what my Social Security benefit might look like at 67, and most importantly, how much extra I’ll need each month to maintain a basic lifestyle.
💰 If you’re short $2,000 a month… how much do you need?
Let’s say your Social Security benefit still leaves you $2,000 short each month.
Over 30 years, that adds up to:
$2,000 × 12 months × 30 years = $720,000
But this number assumes the value of money will stay the same.
Unfortunately—that’s not how America works.
📈 The Harsh Reality of Inflation
Looking at U.S. CPI data, prices have risen dramatically:
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+37% over the past 10 years
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+70% over the past 20 years
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+100% over the past 30 years (prices have basically doubled)
My own rent has increased by about 37% over the last decade, so I can definitely feel this in my daily life.
(By the way, the price of single-family homes in the LA area has increased three to four times over the past 30 years—an extraordinary level of appreciation. A completely different dimension.)
In other words,
today’s $2,000 may need to be $3,000 or more in just 10 years,
and even higher over 20 or 30 years.
So yes—retirement planning is getting more and more complicated.
📊 Can investments help offset inflation?
Putting money into a 401(k) or IRA can help soften the blow.
Long-term market returns can sometimes outpace inflation, giving your savings a chance to grow.
However:
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The market goes up and down
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Having all your money in investments can be risky
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Growth is not guaranteed
So while compound interest is helpful, it doesn’t magically solve everything.
🧾 What about annuities?
To address these retirement fears, the financial industry offers a wide range of products—
one of the most commonly discussed is the annuity.
What is an annuity? (Simple explanation)
An annuity is essentially:
A contract where you give a lump sum to an insurance company,
and they guarantee you a fixed income for life or for a set period.
It functions like a private pension.
Pros:
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Predictable income
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Protection from “outliving your savings”
Cons:
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High fees in some products
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Low flexibility
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Salespeople may receive large commissions
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You may get locked into a contract that’s hard to exit
In short: annuities can be helpful, but you must choose very carefully.
Ease the tension with a PeaceWing T-shirt — link below
🌿 So what can we do?
Thinking seriously about retirement has made me more aware of how important it is to:
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Cut unnecessary spending
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Protect my health
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Extend my healthy lifespan
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And ultimately aim for a life where I stay active, happy, and “go peacefully at the end”—the Japanese ideal of pinpin korori (living well and passing quickly without long suffering)
Money matters—but quality of life matters just as much.
As long as we stay mindful, take care of our health, and prepare little by little, retirement doesn’t have to be scary. We can aim for a future where we live well, laugh often, and enjoy the years ahead with confidence.