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Team Cocco Financial Planning

Economic Observations

IFR Module 225 — Retirement Horizon & Inflation Impact

The reality: Most people underestimate how long they'll live in retirement and how much inflation will erode their purchasing power. This tool helps visualize both challenges — the retirement horizon and the silent wealth destroyer called inflation.

Life Expectancy Data

Based on Social Security Administration actuarial tables. Note: these are AVERAGES — 50% of people live longer than these figures. For planning purposes, consider adding 5-10 years.

Current AgeMale Life ExpectancyFemale Life ExpectancyMale Retirement HorizonFemale Retirement Horizon

Retirement Horizon = remaining years from age 65. For ages below 65, horizon starts at age 65.

Your Retirement Horizon

Retirement Fund Duration

How long will retirement savings need to last?

Inflation Impact Calculator

See how inflation erodes the purchasing power of a fixed income over your retirement years.

Purchasing Power Over Time

What $1,000/month buys today vs. what it will buy in the future at various inflation rates.

Income Needed at Various Inflation Rates

Starting from your current monthly need, this table shows how much income you'll actually need at the start of retirement.

Inflation RateIn 10 YearsIn 15 YearsIn 20 YearsIn 25 YearsIn 30 Years

Historical S&P 500 Context

Understanding market returns requires context — averages can be misleading.

Key Observations:
  • The S&P 500 has returned ~10% annually on average historically
  • After inflation (~3%), the real return is closer to ~7%
  • Sequence-of-returns risk means retirees withdrawing in down markets may never recover
  • The "Lost Decade" (2000-2009) saw the S&P essentially flat — a retiree drawing down would have been devastated
  • Diversification across asset classes — including assets with guarantees — mitigates this risk
Team Cocco Financial Planning · Largo, FL