Just over half of all survey respondents expected inflation to increase costs by less than 10% over the next 10 years. But based on the average inflation rate (3.86%) over the past 50 years, prices could increase by 46.11% every 10 years, the report said.
"Even at a more moderate 2% inflation rate, which is the Federal Reserve's target, inflation could increase prices by 21.9% in 10 years," Barrington said. "Lack of budgeting and failing to anticipate the impact of inflation can cause people to spend down their savings too quickly in retirement."
Survey respondents consisted of 500 people between the ages of 45 to 64 and within 20 years of retirement, and a separate group of 500 people ages 65 and older who already reached retirement.