About
Always think in real (inflation-adjusted) dollars for retirement. $60K today buys ~$33K worth of goods in 30 years at 2.5% inflation. Use real spending, real return rate. Don't conflate nominal future-dollar projections with current purchasing power.
US CPI averaged 2.4% annually 1990-2019, then spiked to 9.1% in mid-2022 before settling to ~2.5-3% in 2026. The Fed's stated target is 2%, but PCE inflation (the Fed's preferred measure) typically runs 0.3-0.5 percentage points below CPI because of methodology differences. For retirement planning, use CPI rather than PCE since most retiree spending baskets (housing, healthcare, food, transportation) track CPI more closely. Healthcare specifically has run 3.5-5% annual inflation for decades – more than 2x core CPI – which is why a 2.5% blended inflation assumption may understate cost growth for a 65+ household where healthcare can be 15-20% of total spending. Many retirement planners now use a "Personal CPI" approach: blend a 4% healthcare CPI on the healthcare portion with 2.5% on everything else, yielding a 2.8-3.0% effective inflation rate.
Formula
The Trinity Study's 4% SWR already includes inflation: the 4% is taken from year-1 balance and INCREASED with CPI each subsequent year. So the simplest framework: target = today's real annual spending × 25, then plan to grow withdrawals with inflation. This works cleanly for someone retiring today. For someone retiring in 25 years, BOTH the target corpus and the annual withdrawal must be inflation-adjusted forward. At 2.5% inflation, $60K real today = $111K nominal in 25 years; the FIRE target rises from $1.5M to $2.78M nominal.
Inflation-adjustment pitfalls
- Conflating nominal and real return rates: A "7% market return" assumption is typically nominal (includes inflation). Subtract inflation to get the real return (~4.5% historically). If you plan with a 7% return AND 2.5% inflation inflating spending, you are double-discounting; results look ~30% better than reality.
- Using outdated CPI baselines: Many published "retirement at $X" articles from 2010-2019 used $X in pre-pandemic dollars. A "comfortable $80K retirement" article from 2018 is roughly $98K-$100K in 2026 purchasing power. Always check the article date and re-base figures.
Frequently asked questions
What inflation rate should I assume for a 30-year retirement plan?
2.5% to 3% is the consensus midpoint for US plans as of 2026. The Fed targets 2% PCE (which translates to about 2.3-2.5% CPI), and the 100-year US CPI average is 3.1%. Use 2.5% as the base case and run a 3.5% "high inflation" stress test. If your portfolio shows >15% failure rate at 3.5%, raise contributions or postpone retirement. Avoid assuming sustained 1970s-style double-digit inflation; that's a tail risk best hedged with TIPS allocation (5-15% of fixed income), not by inflating the base case.
Should I use TIPS or I-Bonds to hedge retirement inflation?
Both have a role. I-Bonds (US Treasury Series I) are best in pre-retirement years for inflation-protected savings: $10K/person/year limit, current 2026 fixed rate ~1.3% + CPI add-on, tax-deferred for up to 30 years, but the $10K cap limits scale. TIPS (Treasury Inflation-Protected Securities) work better in retirement portfolios: no contribution limit, available in any size, principal indexes to CPI semi-annually, and TIPS-ladder strategies can guarantee real-spending floors for 5-30 years. A standard recommendation: 10-15% of fixed-income portion in TIPS for retirees aged 60+, scaling up if inflation expectations rise above 3%.
How accurate is the Inflation-Adjusted Retirement?
It applies the standard formula. Accuracy is limited only by your input precision. For decisions with material consequences (taxes, medical, legal, structural), use the result as a starting point and verify with a qualified professional in the relevant field.
Is the Inflation-Adjusted Retirement free to use?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads around the tool but not inside the calculation flow.
Are my inputs saved anywhere?
No. All inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but the analytics never see what you type into the form.
Can I use the Inflation-Adjusted Retirement on my phone?
Yes. The tool is responsive and tested on iOS Safari, Android Chrome, and major desktop browsers. Touch targets meet Apple's 44pt and Google's 48dp minimum.
Does the Inflation-Adjusted Retirement work offline?
Yes. Once the page has loaded, it works without internet. The calculation runs in JavaScript on your device.
How do I report a bug or suggest improvement to the Inflation-Adjusted Retirement?
Email hi@3tej.com with the URL of this page and a description of what you saw vs expected. We typically respond within 72 hours.
Can I share results from the Inflation-Adjusted Retirement?
Take a screenshot or copy the output. The page doesn't generate shareable URLs for specific calculations - inputs stay in your browser only.
Why are the results different from another inflation-adjusted retirement tool?
Most likely: different formula assumptions, different default values, different rounding rules, or different applicable rates. Check the methodology if both tools document it. Both can be valid for different scenarios.
Is the Inflation-Adjusted Retirement accurate?
The Inflation-Adjusted Retirement applies the standard formula for inflation-adjusted retirement. Accuracy is limited only by your input precision. For decisions with material consequences, use the result as a starting point and verify with a qualified professional or the relevant official source.
Is the Inflation-Adjusted Retirement free?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads that appear around the tool but not inside the calculation flow.
Are my inputs saved?
No. Inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but does not see what you type into the form.
How to use the Inflation-Adjusted Retirement
The Inflation-Adjusted Retirement is a browser-based tool that runs entirely on your device. Inputs you enter never reach a server - all calculations happen client-side in JavaScript. This means:
- Privacy: nothing is logged, sent, or stored by 3Tej. Inputs disappear when you close the tab.
- Speed: results update as you type. No network round trip.
- Offline use: once the page is cached, it works without internet.
- No signup: no account, no email, no rate limits.
Step by step
- Enter your inputs in the form above. Each field is labeled with its unit (currency, percent, kg, etc.) and the expected range.
- Read the result as it updates. The number reflects the formula commonly accepted in Inflation-Adjusted Retirement-related calculations.
- Adjust to see sensitivity: change one input at a time and watch how the output moves. This is the fastest way to understand which variable matters most.
- Copy or screenshot the result for later reference. The page state persists for the session if your browser allows it.
When you would use this
- Quick estimates: when you need a number now and don't want to open a spreadsheet.
- Sensitivity analysis: testing how a result changes as inputs vary, before committing to a real-world decision.
- Comparison: running the same calculation with different inputs to compare options side by side.
- Learning: building intuition for how the underlying math behaves.
- Documentation: capturing a snapshot of inputs and outputs at a point in time.