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Inflation Math for Today’s Retiree

Inflation Math for Today’s Retiree

February 17, 2022

You may have heard the saying, “inflation hurts savers and benefits borrowers.”

The expression suggests that borrowers benefit from inflation because they pay back lenders
with dollars worth less than when the money wasinitially borrowed. But for savers,
your hard-earned dollars may lose
buying power over time.

One popular way to show the “hurts savers” illustration is with retirement calculators. A fixed
amount of money will lose buying power at a much
faster rate if inflation averages 7% versus
1% over an extended period.
That’s one reason why we caution against using some online tools. You
can plug in a set of numbers, and the results may take you by surprise.

They often raise more questions than answers.

If you’re concerned about inflation, please reach out. We work with a
team of professionals who
watch the trends closely, and we can help put
today’s inflation in a better perspective.