Hey everyone! This community seems super awesome. I have a question about accounting for inflation when planning for retirement.
Let’s say I’d like to live off of $50k/year in retirement. My “retirement number” is 1.25 million. I’m 27 now, and according to the retirement calculator using a 7% return I’ll reach that goal by 62 if I continue to invest $500/month.
But won’t I need to be withdrawing more than 50k a year in retirement due to inflation? If there’s an average of 3% inflation per year… won’t I need to actually be withdrawing about $150k annually to maintain the equivalent to today’s $50k lifestyle?
Thank you all for your help!