22/05/2026
A client asked me: "๐๐ผ๐ฒ๐ ๐ถ๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป ๐ฟ๐ฒ๐ฎ๐น๐น๐ ๐บ๐ฎ๐๐๐ฒ๐ฟ ๐๐ต๐ฎ๐ ๐บ๐๐ฐ๐ต ๐ผ๐ป๐ฐ๐ฒ ๐'๐บ ๐ฟ๐ฒ๐๐ถ๐ฟ๐ฒ๐ฑ ๐ฎ๐ป๐ฑ ๐บ๐ ๐ถ๐ป๐ฐ๐ผ๐บ๐ฒ ๐ถ๐ ๐ณ๐ถ๐
๐ฒ๐ฑ?"
Short answer - ๐ฌ๐๐ฆ. Significantly*.
An income of say โฌ4,000 per month at 65 feels comfortable. At 2% annual inflation, that same โฌ4,000 has the purchasing power of roughly โฌ2,700 by age 85. The income hasn't moved. What it buys has.
Utilities, food, healthcare, insurance - these costs move upward. An income that felt more than adequate in the first decade can feel noticeably tighter in the second.
For ARF holders, Revenue's mandatory withdrawal rules add another layer. The minimum annual withdrawal - 4% while under 70, rising to 5% from the year you reach 70 - applies regardless of what markets are doing. In a down year, the withdrawal still comes out.
Most ARF strategies haven't been stress-tested against the combined effect of mandatory withdrawals, market volatility, and inflation across 30 years.
The fix is deliberate investment structuring - growth assets across the full retirement horizon, not a de-risked portfolio that loses ground to inflation quietly over two decades.
Whatever the situation - we've probably seen it before. This conversation is worth having before things get too far gone. ๐ค๐๐ฒ๐๐๐ถ๐ผ๐ป๐ ๐๐ฒ๐น๐ฐ๐ผ๐บ๐ฒ.
๐๐ฎ๐ฟ๐ผ๐น๐ถ๐ป๐ฒ ๐๐ฎ๐ฟ๐๐ถ๐ด๐ฎn BFS CFPยฎ QFA
*Not financial advice, just financial insights. Always speak to a qualified professional before making changes.
๐๐ฏ๐ง๐ญ๐ข๐ต๐ช๐ฐ๐ฏ ๐ด๐ฐ๐ถ๐ณ๐ค๐ฆ: ๐๐ท๐ฆ๐ณ๐ข๐จ๐ฆ ๐ช๐ฏ๐ง๐ญ๐ข๐ต๐ช๐ฐ๐ฏ ๐ง๐ณ๐ฐ๐ฎ ๐๐ข๐ฏ๐ถ๐ข๐ณ๐บ 1997 ๐ต๐ฐ ๐๐ฆ๐ค๐ฆ๐ฎ๐ฃ๐ฆ๐ณ 2025 ๐๐ฆ๐ฏ๐ต๐ณ๐ข๐ญ ๐๐ต๐ข๐ต๐ช๐ด๐ต๐ช๐ค๐ด ๐๐ง๐ง๐ช๐ค๐ฆ (๐๐๐)
