What will your money actually be worth in 20 years?
Inflation is the silent thief of retirement. Most Canadians plan for how much money they will have — but never calculate how much it will actually buy. $4,000 per month today will not feel like $4,000 per month in 20 years. This calculator shows you exactly what inflation does to your purchasing power over time — and what you need to do about it. No sign-up required.
2%
Bank of Canada inflation target
$1,000+
Best $873 worth of goods in 20 years at 3%
Free
This calculator
Your Inflation Profile
Your Money Today
Inflation Settings
Bank of Canada target: 2%. Recent peak: 8.1% (June 2022). Conservative estimate: 3%.
Are your savings keeping up with inflation?
Expense Categories
Adjust which expenses concern you most:
Historically inflates faster than CPI.
Typically runs 1-2% above CPI.
Retirement Planning
Worried your savings won't keep up?
Book a Free ReviewYOUR MONEY'S FUTURE VALUE
$100,000 today will only buy what $55,368 buys now
After 20 years at 3% inflation
Purchasing Power Lost
44.6%
Real Value In 20 Years
$55,368
Inflation Cost Per Year
$2,232
Investment Return vs Inflation
Real Return: 2.91%
Your investments return 6%. Inflation is 3%. Your REAL return is 2.91%.
Your money is growing in real terms — good.
Expense Inflation Over Time
| Expense | Today | In 10 Years | In 20 Years | In 30 Years |
|---|---|---|---|---|
| Housing | $1,800 | $2,419 | $3,251 | $4,369 |
| Groceries | $600 | $806 | $1,084 | $1,456 |
| Healthcare | $200 | $269 | $361 | $485 |
| Transportation | $400 | $538 | $722 | $971 |
| Utilities | $300 | $403 | $542 | $728 |
| Other | $700 | $941 | $1,264 | $1,699 |
| TOTAL | $4,000 | $5,376 | $7,224 | $9,709 |
Purchasing Power Loss Over Time
The gap between these lines is what inflation steals from you.
Retirement Income Impact
You want $5,000/month in retirement (today's dollars). In 20 years at 3% inflation, you'll actually need $9,031/month to maintain the same lifestyle.
LOW INFLATION (2%)
You'll need $7,430/month
MODERATE INFLATION (3%)
You'll need $9,031/month
HIGH INFLATION (5%)
You'll need $13,266/month
TFSA
Tax-free growth means inflation can't touch your returns inside a TFSA. Every dollar of growth stays with you.
REAL ASSETS
Real estate, REITs, and commodities historically keep pace with or beat inflation.
RRSP INVESTING
Growing your RRSP in equities historically outpaces inflation by 4-5% annually over long periods.
AVOID CASH
Cash and GICs below the inflation rate actively destroy wealth in real terms. $100,000 in a 1% GIC with 3% inflation loses $2,000/year in real terms.
Canadian Inflation History — Key Periods
| 1970s | avg 8.5% | 2000s | avg 2.1% |
| 1980s | avg 6.5% | 2010s | avg 1.8% |
| 1990s | avg 2.5% | 2020-2024 | avg 4.2% |
Past inflation does not predict future rates. Use conservative estimates for planning.
At 3% inflation over 20 years, your $100,000 in savings will only have the purchasing power of $55,368 in today's dollars — a loss of $44,632 in real value. Your investments are returning 6%, which means your real return is 2.91% per year, meaning your money is actually growing in purchasing power.
What $1,000 per month buys over time.
The higher inflation runs and the longer your retirement lasts the more critical it is that your investments outpace it. A financial plan that ignores inflation is not a real plan.
The retirement risk nobody talks about enough.
Longevity risk is real
Canadians are living longer than ever. A 65-year-old today has a 50% chance of living to 90. If inflation has not been accounted for, the purchasing power of fixed savings shrinks dramatically every single year.
Fixed income gets eaten alive
If your retirement income is fixed — a pension or GIC paying 2% — and inflation runs at 3%, your real income shrinks every year. What feels like $2,600 per month today could feel like $2,000 per month at 3% inflation in 10 years.
The solution is growth not just savings
Properly invested portfolios matter so much — not just as savings vehicles but as inflation fighters. Assets that grow faster than inflation protect your future purchasing power.
Inflation in real BC life.
A BC family spending $5,000 per month today will need approximately $8,200 per month in 20 years just to maintain the same lifestyle at 2.5% inflation.
The average Victoria home that cost $400,000 in 2004 was worth over $900,000 by 2024 — inflation and asset appreciation working together.
A retiree with a fixed $3,000 per month pension in 2005 has the equivalent purchasing power of approximately $1,800 per month today. Planning for inflation is not optional — it is essential.
