You will need to protect against the risk of inflation

The increase in the cost of living, known as inflation, can erode your purchasing power and eventually affect your standard of living. Since inflation has been relatively low over the past decade, it's easy to forget the inflation of the late 1970s and early 1980s. And, regardless of inflation rates in any isolated period, the price of many common everyday items increases markedly over time. For example, from 1970 to 2000, the price of a U.S. postage stamp has climbed from $0.06 to $0.33¹, a loaf of bread has risen from $0.25 to $0.92 and a pound of butter that once cost $0.87 now runs close to $2.60.²

As you can see, retirement planning is no longer a luxury; it's a necessity. And the sooner you establish a plan and invest regularly, the closer you will be to reaching your retirement goals. Your registered State Farm agent is a great place to start. Just remember, it's never too early -- or too late -- to begin building the foundation for a comfortable retirement. By developing a good understanding of retirement planning, with the help of your registered State Farm agent, you will take an important step in achieving this objective.

1. Source: U.S. Post Office
2. Source: Bureau of Labor Statistics