Inflation reduces what your retirement income can buy, so a fixed pension payment may cover fewer everyday costs over time. The impact depends on whether your income is linked to inflation, how your pension benefits are structured, and how long your retirement lasts. When planning, consider a range of inflation and investment-return assumptions rather than relying on one forecast, and review your income needs as circumstances change. Check your scheme documents and current guidance from the Pensions Authority, Revenue or a regulated financial adviser before making decisions.