| |
|||
|
|
|
|
| |
|||
|
The Effect of Inflation When calculating savings for retirement, it is important to take into consideration the effect of inflation. The average annual inflation rate in America over the past 25 years was approximately 5%. To put this into perspective, with 5% inflation, a cup of coffee that cost $0.65 today will cost $3.00 in 20 years. The chart below shows how inflation can erode your purchasing power over time. See how a 5% inflation rate will impact your income.
|
||||||||||||||||||||||||||||||||||||||||||||||
