How to Keep Inflation From Killing Your Retirement

NEW YORK (TheStreet) -- When financial experts talk about retirement challenges, it's usually savings, debt and taxes at the top of the conversation.

That's as it should be, as each issue can have a significant impact on your ability to meet and surpass your retirement goals.

But there's another lurking issue that can threaten a decent retirement: inflation. And retirement savers need to recognize it as the threat that it is, and craft a strategy to deal with it, one financial adviser says.

"Inflation is commonly referred to as the 'silent retirement killer,'" says Joshua Kadish, a financial planner with RPG-Life Transition Specialists. "Everything from grocery bills to utilities to real estate is subject to inflation, and unless your retirement savings will take this adjustment into account, it could pose a threat to your retirement plans."

Also see: Disturbing Trend Shows Bankruptcies Up for Seniors

If inflation is that big a threat, why do so many retirement savers downplay the issue?

The simple answer is there is a lack of education in the investing population, Kadish explains. 

"People are busy being sold products by the financial services industry, and there is not enough push to focus on the fact that a financial plan is much more valuable and important to future success than a particular investment," he says. "Most people don't understand things in percentages. They don't realize that if long-term inflation has been about 4% that means that if you think you need $100,000 to live your life today, you better plan on spending $148,000 to buy the same basket of goods in 10 years and $219,000 in 20 years just to keep up with inflation."

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