What investors need to know about Retirement Planning and Inflation?

Inflation is a hidden tax that can eat into your retirement planning. Inflation is caused by a rise in the general level of prices. It's usually measured annually as the percentage change in a broad basket of goods and services, called the Cost of Living Index. It is essential to factor in inflation in your retirement planning. If you plan to retire today, how much money can you withdraw from your retirement savings each month to meet your expenses? If you retire tomorrow, how much money will you need to retire? You can answer those questions by calculating inflation.