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By Jason Stipp and Christine Benz | 11-08-2013 09:00 AM

5 Must-Know Statistics About Retirement

Stats show good investor timing in target-date funds, Social Security benefit builders, bank-loan funds on a tear, and more.

Jason Stipp: I'm Jason Stipp for Morningstar and welcome to The Friday Five. This week: five must-know statistics about retirement.

Sitting in for Jeremy Glaser is Morningstar's Christine Benz, our director of personal finance.

Thanks for joining me, Christine.

Christine Benz: Jason, great to be here.

Stipp: You have five somewhat surprising statistics, in some cases, that you should know about retirement. The first one is 1.5%. What is that?

Benz: That's the percentage increase in cost-of-living adjustments that Social Security recipients will get in 2014. It's reflective of the fact that we've seen gas prices trend down, and while we haven't seen medical costs trend down, we've actually seen the rate of increase decline. Those are two reasons why the rate of increase in cost-of-living adjustments is just about 1.5%--not high, but not particularly low, either.

The other thing to bear in mind is that we are not seeing increases in Medicare Part B premiums for 2014, and we're also seeing deductibles for Medicare stay the same in 2014. It is not as though this increase is giving with one hand and taking away with the other, which we have seen in previous years.

Stipp: Given that this seems like a pretty low rate of inflation, what should I think about the amount of inflation protection that I might want to have in my portfolio?

Benz: I think it's really important to look at the rate of inflation in your own personal basket of goods. If you do have portfolio assets that you're relying on to supply additional living expenses, if you see that your personal rate of inflation is a lot higher than this 1.5%, you might think about adding more explicit inflation protection in that part of your portfolio or, in fact, maybe having a little more in stocks, because stocks, as we know, have the potential to out-earn other asset classes over time.

Stipp: The next statistic, also related to Social Security, is 8%.

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