Retirement Budgets May Be Backward

Many retirees start with yield, but that only covers today. Better planning asks whether income will still handle rising costs years from now.
In the US, the 2026 cost-of-living adjustment was ~3%, while inflation stayed above that through the first half of 2026, pressuring fixed-income budgets.
High-yield assets can solve immediate cash needs, but flat payouts lose purchasing power over time, and distribution cuts can leave a real hole.
Dividend-growth stocks usually start with lower income, yet steadily rising payouts can outpace inflation and potentially double portfolio income over a decade.
More durable retirement plans blend current income, growing income, and stable bonds, while stress-testing any high-yield position against a possible payout cut.