Is money valued the same way it was years ago? When I first heard the opening lyrics, “I wanna be a billionaire” I thought to myself, this guy must be crazy. Who needs a billion dollars?

Most people will never need such a large sum of money; yet, the writer brings up a good point.

Is money valued the same way it was years ago? Position the Billionaire song (released in 2010) against the “If I Had A Million Dollars” song by Barenaked Ladies (released in 1992).

Both songs share dreams of the endless possibilities with the sudden appearance of a lump sum of money – the amount of the lump sum being vastly different. Instead of dreaming about a windfall, what if you saved and invested your money to provide for a comfortable life after you stop working? Would you need a billion dollars to retire? Would you need a million dollars to retire?

Let’s look at an example:

50-year-old Mazie has $275,000 in a retirement account and wants to retire in 12 years when she’s 62 and eligible for reduced Social Security benefits.

Based on her current account value, she would have over $1,000,000 at retirement assuming a 7% average annual rate of return.*

Depending on the rate of inflation, she would be able to generate between $26,423 and $33,357 in today’s dollars (Current Value) per year from her account if her withdrawal rate is 4%.

Combine Mazie’s investment income with Social Security and a potential pension and this would be her new retirement income. Is this enough for her?

*Examples given in this article are hypothetical in nature and are not representative of any specific situation or investment product. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.

While none of us need a billion dollars to retire, we need more than we expect because of inflation.


Inflation is the idea that $1 today is worth more than $1 in the future. Inflation will have a greater effect on monies in direct relation with the length of time involved.

So, the longer your retirement lasts, the more impact inflation will have on your money later in life. Investing before and during retirement is important to maintain purchasing power by not allowing inflation to eat away at your income.


Start saving now and allow compound interest to work for you and your money.

Let’s check out the examples of how much your money can grow over 10, 20, and 30 years based on different growth rate assumptions:

A billion dollars is not the new million dollars. Yet, over time, inflation will force us to save more money to maintain the same standard of living.