Inflation can have a significant impact on retirement savings, as it erodes the purchasing power of money over time. This means that the same amount of money will buy less in the future than it does today. For retirees, this can be particularly concerning as they may need their savings to last for several decades.

For example, if a retiree has $1,000,000 in savings and the inflation rate is 3% per year, after 10 years, the purchasing power of that $1,000,000 would be equivalent to about $740,000 in today's dollars.

One way to mitigate the impact of inflation on retirement savings is to invest in assets that have historically outpaced inflation, such as stocks or real estate. Additionally, retirees may consider investing in inflation-protected securities, like TIPS (Treasury Inflation-Protected Securities), which adjust with inflation to help preserve purchasing power.

It's important for retirees to factor in the impact of inflation when planning for retirement and to regularly review and adjust their investment strategies to account for changing economic conditions.

References:

1. Investopedia - How Inflation Affects Your Retirement
2. Charles Schwab - How Inflation Affects Retirement Savings