How inflation can change your retirement plan

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October 8, 2026 / 10:26 AM EDT / CBS News

Planning for retirement generally requires you to make a lot of assumptions about the future. You have to estimate how much you'll spend, how long your savings may need to last and what kind of returns your investments could generate along the way. Right now, about 61% of Americans have a financial strategy in place, according to New York Life's 2026 Wealth Watch Midyear Outlook — up from 58% last year. But even a carefully constructed plan can start to look different when the cost of living changes faster than expected.

Those assumptions have become harder to make with confidence, though, after several years of significant price increases. Case in point? New York Life's study also shows that just 52% are confident their retirement savings will last a lifetime. Part of the issue is that while inflation has eased from the levels seen earlier in the decade, the cost of many everyday expenses remains elevated, and prices are continuing to climb. That can create a meaningful gap between what retirees…

Original source: https://www.cbsnews.com/moneywatch/