See how inflation quietly erodes your purchasing power. What seems like a lot of money today may be worth much less in the future.
Inflation is the silent killer of purchasing power. At 3% annually, prices roughly double every 24 years — meaning your retirement savings need to grow just to stay in place. This free inflation calculator shows exactly how much future money will be worth in today's dollars, and how much you need to save to maintain your lifestyle. If you're holding cash, this calculator will be a wake-up call.
If you're 35 and planning to retire at 65, that's 30 years of inflation. At 3% annually, prices roughly double every 24 years. That means a $60,000/year lifestyle today will cost about $120,000/year in 25 years.
This is why keeping all your savings in cash is dangerous — it's slowly being eaten away. Investing in stocks and real estate is the best hedge against inflation.
Cash in a savings account at 0.5% interest while inflation is 3% loses 2.5% of purchasing power per year. Over 20 years, that's nearly 40% of your wealth.
Healthcare costs have historically risen 5–6% per year, well above general inflation. If you're retiring early, this hits hardest.
Too much money chasing too few goods. It can come from government stimulus, supply chain issues, rising wages, or rising energy prices. The Federal Reserve targets about 2% inflation per year.
Stocks historically beat inflation by about 7% per year after inflation. Real estate, commodities, and TIPS (Treasury Inflation-Protected Securities) are also common hedges. Cash bonds usually barely keep up.
Moderate inflation (2–3%) is actually healthy — it encourages spending and investment. Deflation (falling prices) is much worse, because people stop spending and the economy stalls.