How to calculate the inflation rate for retirement days?

Hi Sakqen!


In the US, the inflation rate is measured by the CPI or Consumer Price Index calculation. The government usually makes changes in the price from month to month and year to year. But this is a very grammatical language.

You may simply take the help of a “Retirement Calculator” to understand how much money you require after retirement while calculating the inflation.

Let me know how you liked it after using the calculator.

Thanks!

It's good that you have taken the inflation rate into consideration while planning for your retirement. But to calculate it, you can take the help of a genuine retirement calculator. It can provide you a rough idea about how much money you need after your retirement.
However, I would suggest you to save a substantial amount of money so that you can follow the 4% withdrawal rate. Financial experts often advice this so that you can withdraw 4% of your net worth after retirement without hurting your finances.

It's said that inflation is the silent killer of retirement. Usually, the normal inflation rate is around 3.5% per year. If you go by that rate, then it means that you have to increase your income by 40%. If your current income is $50,000 right now, then you'll need $70,000 to cover your same expenses after 20 years.

If you're confused, you can take the help of a financial adviser for your invest related discussions. They can review your insurance policies and you can discuss your lifestyle to assess how much you require for your golden days.

Consult a financial adviser for proper guidance.