It's tempting to not get too worked up about inflation and its impact on your retirement plan. After all, CPI has been running at a fairly benign level of less than 2% for the better part of a decade. And in any case, how could such innocuous little numbers like 2% or 3% make a big difference in the success or failure of your plan?…
Inflation as Retirement’s Silent Killer
Here’s some eye-opening statistics for you: At a conservative inflation rate of 2.5%, your dollar today will be worth about 78 cents in 10 years. That same dollar will be worth only 61 cents in 20 years, and only 48 cents in 30 years. Think about how that could impact your lifestyle in retirement....
Remember inflation?
It's been a while since inflation was a big part of American life. It has been so low recently that Social Security payments were not increased in 3 of the last 6 years, and the Federal Reserve has even raised the possibility of negative interest rates.
Yet inflation has not disappeared, and for retirees, even low inflation can have an outsized effect on their finances...