How does inflation affect my retirement savings projections?

Inflation is an important factor to consider when projecting your future retirement savings. Inflation is the general increase in the cost of goods and services over time, and it can erode the purchasing power of your retirement savings.

Retirement calculators take inflation into account when estimating your future retirement savings. They use an inflation rate to adjust for the increase in prices over time. The inflation rate used may be an average historical rate, or it may be a projection of future inflation based on economic forecasts.

To make sure your retirement savings projections account for inflation, it's important to use a retirement calculator that includes inflation in its calculations. You can also consider increasing your retirement savings contributions to account for inflation and maintain your purchasing power in retirement.