How Inflation Affects Your Savings
Nominal returns flatter, real returns tell the truth. How to convert one into the other in a single step.
2026-06-10 · 4 min read
Real versus nominal
A 4% savings rate with 3% inflation is a 1% real return. Your balance grows, but what it buys barely does. Judge every plan in real terms.
The rule of 72
Divide 72 by an inflation rate to see how long prices take to double. At 3%, that is 24 years — well inside a normal retirement.