In short
Most things get more expensive over time. That is why the same money will buy you less later than it does today.
Last checked: 11 October 2026 · 4 min read · RenteKannMehr editorial team
Now in more detail
Inflation means that prices rise on average. For the same amount of money you get less later on. For a savings goal that is decades away, that makes a big difference.
Nominal and real
- Nominal is the amount that will later appear on your account statement.
- Real is what you could afford with it at today's prices.
| After | at 1% inflation | at 2% inflation | at 3% inflation |
|---|---|---|---|
| 10 years | €905 | €820 | €744 |
| 20 years | €820 | €673 | €554 |
| 30 years | €742 | €552 | €412 |
| 40 years | €672 | €453 | €307 |
Formula: purchasing power = amount ÷ (1 + inflation) to the power of the number of years. The European Central Bank aims for an inflation rate of 2% over the medium term; the actual rate varies from year to year.
What this means for retirement saving
- A high nominal final capital can be worth considerably less in real terms.
- Investments whose return stays below inflation in the long run lose purchasing power – even if the amount grows.
- If you raise your savings contribution regularly, you make up for the loss of purchasing power of your contributions.
How our calculator works it out
In the calculator you can set an inflation assumption. It then shows, in addition to the nominal final capital, the value in today's purchasing power and draws it as a dashed line in the chart. You are free to choose the assumption; nobody knows future inflation.
More questions?
If you have more questions, talk to a personal adviser near you. They can look at your situation in detail. Asking is free and without obligation.