Why Inflation Hurts the Aged the Maximum

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The best social benefit that a central bank and a government can provide to people is controlling inflation and keeping it at an optimum level.

Suppose, your monthly expenditure is $5000 at present cost. If you are retiring after 24 years, then what will be your monthly income requirement? It depends upon where you are living, and who your central bank is.

  • If your central bank is keeping the inflation at 2%, then your monthly requirement will be $8040, after 24 years.
  • If your central bank is keeping the inflation at 3%, then your monthly requirement will be $10145, after 24 years.
  • If your central bank is keeping the inflation at 4%, then your monthly requirement will be $12795, after 24 years.
  • If your central bank is keeping the inflation at 5%, then your monthly requirement will be $16120, after 24 years.
  • If your central bank is keeping the inflation at 6%, then your monthly requirement will be $20240, after 24 years.
  • @7% your monthly requirement will be $25385.
  • @8% your monthly requirement will be $31665.
  • @9% your monthly requirement will be $39500.
  • @10% your monthly requirement will be $49270.

If you have any specific goal such as buying a home at your retirement, then you will have to look for inflation index of home. If you can buy a home for $100,000 today it will cost you $1 million after 24 years at 10% inflation. Good luck for happy retirement.

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