Underestimating the destructive power of inflation

5. Underestimating the destructive power of inflation . Most people understand that inflation wreaks havoc on any budget, but few people plan for it. Just look at those around you who’ve retired. Have you noticed that many of them start out living pretty comfortably and then they slowly become more and more frugal? Why do you think that is? When you plan for your golden years, it’s simply not enough to assume that your spending will stay the same forever. If you want to maintain your quality of life, it’s mighty important to not only plan for a sustainable withdraw but an ever-increasing one.