A comfortable income today buys less in the future. See what you'll need to keep pace.
A retirement inflation calculator shows how much annual income you'll need in the future to match your desired lifestyle today, once inflation is factored in.
Inflation quietly erodes purchasing power: at 3% a year, prices roughly double over 24 years. An income that feels comfortable today will buy noticeably less decades from now, so a retirement plan built on today's dollars can fall short. This calculator inflates your target so you can size savings realistically.
The fix is to target the future income you'll actually need and choose investments that can outpace inflation over time. Social Security is inflation-indexed, which helps, but most personal savings are not automatically protected. Reviewing your plan against a realistic inflation assumption keeps it grounded.
It raises the dollar income you'll need to maintain the same lifestyle. At 3%, you'd need roughly double the income in about 24 years to buy the same things.
A long-run average around 2.5% to 3% is common, though it varies. Using a realistic figure avoids underestimating your future needs.
Yes, Social Security benefits receive annual cost-of-living adjustments, but most personal savings and pensions are not automatically inflation-protected.
See the exact formula and a worked example on our methodology page.