Over time, the effects of inflation can erode the value of your savings. At the end of an inflationary year, a dollar buys a little bit less than the year before. This calculator is designed to estimate the future cost of an item based on today’s prices and the rate of inflation you expect.
The results below show the projected future cost based on the time frame you selected and the rate of inflation you expect over that period. How will you stay ahead of inflation? There are strategies you can implement to help your savings and investments keep pace with inflation over the long term.
The graph below illustrates the incremental year-by-year increase in prices based
on the factors you input. Even at relatively low rates of inflation, the cost of
goods and services can rise dramatically over time. For example, assuming 4 percent
inflation, the value of $1 would be cut in half every 18 years. That means if you
are currently 30 years old, prices will have quadrupled by the time you reach retirement
age, assuming 4 percent annual inflation.
This hypothetical example is used for illustrative purposes only. Actual results will vary.
This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
This material was written and prepared by Broadridge Advisor Solutions.
© 2020 Broadridge Investor Communication Solutions, Inc.