New research from SmartAsset highlights the harmful impact that inflation has on an individual's retirement account, demonstrating that an increase of even a couple of percentage points over the long term can drain a retiree's savings much sooner than anticipated.
The study considered three hypothetical retirees facing varying inflation rates per year and compared how their retirement savings fared under the circumstances. Susannah Snider, manager editor of financial education at SmartAsset, told BenefitsPro that the study shows the severe impact inflation can have, providing crucial context during a period of high inflation. In the United States, consumer prices rose 8.3% in August over the previous year.
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