See how inflation erodes purchasing power and how much future dollars are worth in today's money.
Inflation is the rate at which prices increase over time, reducing your money's purchasing power. At 3% inflation, $100 today buys only about $55 worth of goods in 20 years.
| Period | Avg Annual Inflation |
|---|---|
| 1950–2024 (Long-term avg) | 3.5% |
| 2010–2019 (Low inflation era) | 1.8% |
| 2021–2023 (Post-COVID) | 5.5%+ |
| 2024 | ~3.0% |
If you need $5,000/month today and plan to retire in 25 years, at 3% inflation you'll need about $10,450/month to maintain the same lifestyle. This is why your investments need to outpace inflation.