Inflation affects your savings
Inflation constantly erodes the buying power of savings. Maintaining a standard of living in the latter stages of retirement may be difficult if you’re not generating income that is outpacing inflation. This illustration shows the effects of inflation over time:
The future value of $1,000
Year |
0 % |
1 % |
2 % |
4 % |
|---|---|---|---|---|
1 |
$ 1,000 |
$ 990 |
$ 980 |
$ 962 |
10 |
$ 1,000 |
$ 905 |
$ 820 |
$ 676 |
20 |
$ 1,000 |
$ 820 |
$ 673 |
$ 456 |
30 |
$ 1,000 |
$ 742 |
$ 552 |
$ 308 |
IncomePlus can help grow savings to offset inflation. For more information about other retirement risks please click here to see our videos on Retirement Risks & The Retirement Risk Zone