Actually, I did not ask people to factor inflation into their number because it is handled in the calculator I created, which you can find here. It’s easier for people to think in terms of today’s dollars, and my goal was to keep this as simple as possible. However, I fully account for inflation in the free retirement calculator I created. It’s just handled behind the scenes. If you’re interested, it assumes a 3.5% rate of inflation.

Trust me, I would not forget to include inflation in such an important calculation. I’m as adamant about its importance as you are. But I also did not want to complicate things for the average person either. If you follow the steps in my article with the free retirement calculator, inflation will be handled for you. Thanks again for your comment!

You mentioned that this person “determined” they will need $40k during their retirement. $40k in 35 years equals to $14k in today’s dollar assuming 3% inflation. How many people you know TODAY who lives on $14k a year?

This number is a rude awakening. I thought I would only need around $30k when I reach 60, which is in 32 years (and I thought it was a modest number). But that number is in today’s dollar. With 4% inflation over 32 years, that $30k balloons to $107,000. So that means I will need over $2.5 million in my nest egg which is more than twice my initial estimation. Wow!

TRI is more crucial than people realise and most articles I read in retirement subject only “guesstimate” the numbers when it is actually what distinguish between eating baked beans and having fulfilling retirement. Just think about this; how many people 30 years ago thought that they would need about $40k/year (or more?) to live comfortably today?