Planning for retirement can feel like aiming at a moving target, especially when inflation is part of the equation. Many of us use retirement income calculators to estimate how much we’ll need in our golden years. These tools often ask for an expected inflation rate, then project how much more expensive life will get. But are these calculators overestimating the impact of inflation on your retirement savings? The answer isn’t as simple as it seems. Getting this wrong could mean saving more than necessary—or not enough.
Relying on a calculator for your retirement plan is tempting, but it’s important to know where these estimates might go astray. Let’s look at why retirement income calculators may exaggerate inflation’s effect and what that means for your financial future.
