Inflation can significantly affect your retirement savings. While you are working, inflation is often offset by salary adjustments, such as cost of living increases and performance raises. But in retirement, you don't have these same gains to account for inflation, making it difficult to maintain the standard of living you desire.
Like many of my Boomer contemporaries, I don't foresee retiring to the golf course, or the cruise ship, or the garden, the garage, or even the couch. Instead, I suspect that we'll need to be generating an income - not through our meager investments but through the sweat on our carbuncled brows and the toil of our arthritic hands - until we draw our last ragged breaths.