RE: Retirement In An Age Of Uncertainty
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I often find retirement - and the form it will take in the future, especially after your productivity drops significantly - a topic that comes to my mind. You've pointed out very well in the post, that preparing for retirement used to be a rather linear, pretty straightforward process. But it is no longer the case. When you get yearly inflation into the range of up to 3%, you have some predictability. But when that shoots every once in a while to 8-9% percent in the US or more like 15% in my country, we are talking about a different kind of losing value in the long term. Well-placed, low-risk investments help, but it only takes a few isolated bad years in the long term to go from feeling on solid ground to being on a very shaky one with the retirement period.
Right. I think the increasing uncertainty and unpredictability of the modern era puts traditional retirement models on a shaky ground that will eventually collapse or become unreliable. The case with investments especially when it comes to investments for retirement often worries me. Because it seems stable investments are becoming less stable or guaranteed nowadays. Solely relying on them for retirement is definitely risky. But on the flip side, I think there might be new investments that will gradually grow in stability as the years pass, especially in the decentralized space.
Thanks for stopping by :)