ndent on inflation but on the falling reserves of oil under the ground. What oil is there is less accessible, so it costs more to bring to market.

Here's the problem: when you are tal

The biggest problem facing you when you plan your retirement fund – or start taking the money – is inflation. You may have fallen for government statistics that show inflation is low. Don't believe it! The official figures understate inflation, probably by 70-100%. In other words, if they say inflation is 3%it is probably 5%. Over 15-25 years, inflation at even 3% will have a serious effect on your savings.

What's worse is that a lot of the things that put fun into your life keep going up more than inflation – basically, anything that involves labor, from hairdressing, restaurants to golf clubs. Also, we can expect the price of gasoline to double over the next five years – and it will go even higher than that in 10-20 years time. This is not dependent on inflation but on the falling reserves of oil under the ground. What oil is there is less accessible, so it costs more to bring to market.

Here's the problem: when you are talk

believe it! The official figures understate inflation, probably by 70-100%. In other words, if they say inflation is 3%it is probably 5%. Over 15-25 years, inflation at even 3% will have a serious effect on your savings.

What's worse is that a lot of the things that put fun into your life keep going up more than inflation – basically, anything that involves labor, from hairdressing, restaurants to golf clubs. Also, we can expect the price of gasoline to double over the next five years – and it will go even higher than that in 10-20 years time. This is not dependent on inflation but on the falling reserves of oil under the ground. What oil is there is less accessible, so it costs more to bring to market.

Here's the problem: when you are tal

rious effect on your savings.

What's worse is that a lot of the things that put fun into your life keep going up more than inflation – basically, anything that involves labor, from hairdressing, restaurants to golf clubs. Also, we can expect the price of gasoline to double over the next five years – and it will go even higher than that in 10-20 years time. This is not dependent on inflation but on the falling reserves of oil under the ground. What oil is there is less accessible, so it costs more to bring to market.

Here's the problem: when you are tal

rdressing, restaurants to golf clubs. Also, we can expect the price of gasoline to double over the next five years – and it will go even higher than that in 10-20 years time. This is not dependent on inflation but on the falling reserves of oil under the ground. What oil is there is less accessible, so it costs more to bring to market.

Here's the problem: when you are tal

ndent on inflation but on the falling reserves of oil under the ground. What oil is there is less accessible, so it costs more to bring to market.

Here's the problem: when you are talking about retirement, you are looking ahead a long time. Even if you are 50, it will be 15 years before you retire, and by that time almost everything you buy could cost twice as much as now. You are probably expecting to live to 80 or more, and that is 30 or more years on from now if you are 50. Think back to what things cost 30 years ago and you will get a shock.

So if you are saving for retirement, try to save double whatever seems a reasonable amount at today's prices.

But what should you do when you retire? The normal thing is to buy an annuity which will pay you a guaranteed sum for the rest of your life. This will be a constant amount each month, but your spending power will decline each year.

Don't put all your money into one