Inflation happens

When I retire, will my money be worth the same as it is today?

Sadly, no. Inflation happens, so you need to consider the loss of purchase power. Below is a chart comparing the cost of stamps, movie tickets and vehicles over the span of 40 years.1
Table Infographic showing the increase in the prices of a stamp, a movie ticket and a motor vehicle from 1985 to 2025. A stamp rose from 22 cents in 1985 to 49 cents in 2014 and is expected to rise to a price of 76 cents by 2025. A movie ticket rose from $3.55 in 1985 to $7.93 in 2014 and is expected to rise to an expected price of $12.45 by 2025. The price of an average motor vehicle rose from $11,838 in 1985 to $30,748 in 2014 and is expected to rise to a price of $45,604 by 2025.


It may be a good idea to increase your contribution to offset the impact of inflation on your money.

1 Assumed inflation rate of 3.5%
2 https://www.usps.com/business/prices.htm
3 National Association of Theater Owners, natoonline.org (2018).
4 https://mediaroom.kbb.com/average-new-car-prices-jump-2-percent-march-2018-suv-sales-strength-according-to-kelley-blue-book

NRW-7017AO