See How Inflation Could Impact Your Future Purchasing Power
Over time, inflation quietly reduces the value of every dollar you save. What might seem like enough today could fall short tomorrow — unless you plan ahead.
Use our simple Inflation Impact Calculator to understand how rising costs could affect your savings and what steps you can take to protect your financial future.
How Our Inflation Calculator Works
Just enter three numbers: the amount you’re considering, the number of years you want to project, and your best estimate of average annual inflation.
We’ll instantly show you how much your money could be worth in today’s dollars after accounting for inflation.
Inflation Impact Calculator
What does “Adjusted Future Value” mean?
Adjusted future value shows how much your money today will be worth in the future after accounting for inflation. As prices rise over time, the purchasing power of your savings gradually decreases. This calculator helps you estimate how much less your current amount might buy in the years ahead, giving you a more realistic picture of your future financial strength and helping you plan accordingly.
Protect Your Financial Future
Understanding inflation is just the first step. The next step is building a strategy that grows your money faster than inflation erodes it.
Concerned about how inflation might impact your retirement? Talk to a Wealth Manager today and explore strategies designed to outpace rising costs.
Frequently Asked Questions
What is inflation and why does it matter for retirement planning?
Inflation is the gradual increase in the prices of goods and services over time. If your investments don’t grow faster than inflation, the real value of your savings can shrink, meaning you could afford less during retirement.
What inflation rate should I assume when planning?
Historically, average inflation in the U.S. has been around 2% to 3% annually. However, recent years have seen higher spikes. Using a conservative estimate, like 3% or even 4%, can help you plan more cautiously.
How does inflation affect my retirement income needs?
You may need significantly more income later in retirement just to maintain the same lifestyle you have today. Ignoring inflation could lead to shortfalls during your most vulnerable years.
What types of investments can help protect against inflation?
Strategies to hedge against inflation include investing in stocks, real assets like real estate, Treasury Inflation-Protected Securities (TIPS), and diversified portfolios designed to outpace inflation over time. A financial advisor can help tailor a strategy to your goals and risk tolerance.
Can I ignore inflation if I'm close to retirement?
Even if you’re close to retirement, inflation matters because you could still live 20–30 more years. Accounting for inflation ensures that your savings stretch to meet your needs for your entire retirement.