No. of Recommendations: 0
Inflation was way more than 2%.
Yes, inflation is a killer for retirement expenses in the long run. I used 2% for inflation in my illustration because that's what we've experienced for a long time, and it's what the Fed wants inflation to come down to. If inflation averages 5% for the next 20 years, as it did over the 1966-1982 period, then someone needing $80K for annual expenses today will need closer to $200K annually in 2044. Let's hope that doesn't happen. (SS does provide a COLA adjustment each year.)
