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Don’t Make Me Say I Told You So 41
Average Annual Inflation by Decade
12%
9.80%
10%
8% 7.25%
5.82%
6% 4.86% Long Term Avg.
1913-2018
4% 3.08% 3.15%
2.45% 2.54%
1.82% 1.80%
2%
0.38% -2.08%
0%
-2% 1913- 1920- 1930- 1940- 1950- 1960- 1970- 1980- 1990- 2000- 2010-
1919 1929 1939 1949 1959 1969 1979 1989 1999 2009 2019
-4%
Source: In ationData.com, 2019
Summary
► The average rate of inflation over the last several
decades has been approximately 3%.
► Even a modest rate of inflation will dramatically increase
your income needs over time.
► Many retirees don’t factor the impact of inflation into
future income needs.
Chapter 2: You’ll Need More Money Than You Think
