Inflation Eroder

What it does

Projects a fixed (or partial-COLA) monthly income forward in time, showing both the nominal dollar amount you'd receive and the equivalent purchasing power in today's dollars. Side-by-side reveals the silent drag of inflation on income that doesn't grow.

Who this helps

Anyone receiving a fixed income stream — private-sector pensioners (most have no COLA), recipients of structured settlements, holders of fixed annuities, and people considering whether to take a pension as a fixed monthly check vs as a lump sum.

How to use it

1. Enter your current monthly amount in today's dollars.
2. Set the COLA — most private pensions are 0%; Social Security tracks inflation; public-sector varies (often capped 2-3%).
3. Pick an inflation assumption — long-run US average is ~3%.
4. Pick a horizon — how far out you want to see the erosion.
5. Read the stat boxes for the key milestones (when the income halves in real terms, total purchasing-power loss).

What it doesn't do

Doesn't model bond ladders, TIPS, or other inflation hedges (those are separate decisions). Healthcare inflation runs ~5% — higher than general CPI — so retirees with heavy medical exposure may want to model with a higher inflation rate.