What 4pc inflation could do to your retirement savings

The warning that the Iran war could push inflation to 5 per cent this year is worrying enough for everyone, but it contains a massive wake-up call for anyone who is retired or about to retire.

That’s because even an increase of a percentage point or two in average inflation will slash the nest eggs or the purchasing power of retirees should it be sustained for a long period as it was in the 1950s, ’70s and ’80s, when inflation averaged well over 5 per cent.

Source: https://www.afr.com/wealth/personal-finance/how-a-jump-in-inflation-could-cost-you-1-9m-in-retirement-20260317-p5ob4v