The Retirement Number Nobody Talks About -- and Why $1 Million May Not Be Enough in 2036

By Selena Maranjian – Apr 4, 2026 at 10:15AM ESTKey PointsInflation has averaged around 3% over long periods, but it can be much higher or lower from year to year.It will shrink the purchasing power of your precious retirement nest egg over time.Plan for inflation to prevent it from hurting you financially.Imagine it. It's 2011, you're 40 years old, and you decide to start saving and investing for retirement in earnest. Your goal? To retire in 2036 at age 65 with a $1 million nest egg. That clearly sounds like a lot, but will it be enough? Much depends on a certain retirement number that many people ignore. That number is the inflation rate. Over many decades, inflation has been roughly 3%, but that's an average. There are some years or periods of years with quite steep inflation -- even in double digits -- and some featuring low inflation. Image source: Getty Images. Inflation and your retirement Simply put, inflation eats away at the purchasing power of your money and over longer periods, it can do a lot of damage. Imagine that you reach your goal of amassing $1 million by retirement in 2036. Well, if inflation averages 3%, the $1 million that you expected would be enough back in 2011 will have the purchasing power of only around $500,000 after 25 years. So your goal will have been too low. Things that cost you, say, $1,000 in 2011 may cost you $2,000 in 2036. Inflation is an issue in retirement, too. Because even if you retire with what you think is enough -- such as $2 million -- it too will have less purchasing power in your later years of retirement. What to do Fortunately, inflation won't doom you if you're prepared for it. Here are some strategies to consider: Beefing up your retirement nest egg goal -- perhaps even doubling it, if you can. Consider delaying retiring for a few more years, as that lets your nest egg grow for longer and leaves it having to support you for fewer years. Consider delaying claiming your Social Security benefits, too, ideally until age 70. (Various studies have found that for most people, delaying until 70 will get you the most in total benefits.) By maximizing your benefits, you'll also be getting more out of the nearly annual cost-of-living adjustments (COLAs). Consider loading your portfolio with lots of healthy and growing dividend-paying stocks -- because those dividends tend to be paid in good times and bad, and they will also likely increase over time, often keeping up with or surpassing inflation. (You don't have to become a dividend stock expert, either -- you might simply invest in one or more dividend-focused exchange-traded funds (ETFs). Be sure to develop a solid retirement plan -- and to factor inflation into it, too.Read NextApr 4, 2026 •By Maurie Backman3 Things Rich Retirees Do Differently With Their Social Security BenefitsApr 4, 2026 •By Dana GeorgeIs It Possible to Live on Social Security Benefits Alone While Living Abroad?Apr 4, 2026 •By James BrumleyStop Losing Money to Required Minimum Distributions and Use This Simple FixApr 4, 2026 •By Maurie BackmanMedicare Costs Are Climbing Faster Than You Think: What Retirees Need to Know NowApr 3, 2026 •By Stefon WaltersHow Your Social Security Benefit Is Calculated -- and Where Most Retirees Go WrongApr 3, 2026 •By Reuben Gregg BrewerHere's How Claiming Social Security at 62 Affects Your Monthly Income for LifeAbout the AuthorSelena Maranjian is a contributing personal finance and investing expert at The Motley Fool. Selena has produced The Motley Fool’s nationally syndicated newspaper feature since 1997. She is the author of The Motley Fool Money Guide and Investment Clubs: How to Start and Run One the Motley Fool Way, and the co-author of The Motley Fool Investment Guide for Teens and several editions of The Motley Fool Investment Tax Guide. Prior to The Motley Fool, she worked as a high school teacher and public opinion analyst. She holds a master’s degree in teaching from Brown University and a master’s degree in finance from the Wharton School of the University of Pennsylvania.TMFSelena