Question $107(0\mathrm{.}72$ points$)$

When planning for retirement, inflation:

Decreases through retirement.

Should be ignored since it will have no effect on retirement funding.

Should be considered since income received earlier in retirement will buy more than the same amount received later in retirement due to the rising prices of goods and services.

Is unimportant since pension income does not change in retirement.

Should be recognized since it will increase the value of income received in retirement.