Because inflation makes goods and services cost more over time, one would be wise to always control for inflation when planning one's retirement.

Question

Quizplus · Accepted Answer

Controlling for inflation is important in retirement planning as it ensures that the retiree's purchasing power is not eroded over time due to the rising cost of goods and services. Without factoring in inflation, one may underestimate the amount of money needed for retirement, subsequently leaving them with a lower standard of living than anticipated.

Because Inflation Makes Goods and Services Cost More Over Time