How does inflation change how much I can safely withdraw over a 30-year retirement?
Inflation quietly erodes purchasing power, so a fixed dollar income shrinks in real terms every year. At 3% inflation, prices roughly double over 24 years, meaning the $60,000 that covers your life today could require about $120,000 late in a long retirement. That's why sustainable withdrawal strategies build in annual inflation raises rather than assuming flat spending. It's also why holding some stocks in retirement matters: bonds and cash alone often fail to outpace inflation over decades. Social Security helps because its cost-of-living adjustment rises with inflation, per the Social Security Administration, making delayed benefits an even stronger inflation hedge than most annuities, which are usually fixed.
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