Services Inflation Erodes the Purchasing Power of Travel-Heavy Retirements

A $30,000 annual travel budget today will require significant growth to maintain purchasing power over a decade. This is because travel-heavy retirements rely on services such as lodging, transportation, and recreation, which are subject to services inflation. As of February 2026, services inflation is running at 3.26% annually, nearly double the rate of goods inflation, which sits at 1.80%. Consequently, travel costs rise faster than headline inflation.