You're assuming the money is invested only as cash in the bank. It's quite possible to make considerably above inflation with other investments, and anyone with that amount of money is very likely to have a range of investment types.

You are correct. Interest was not factored in. 5-10 year investments with loan options are also a great alternative.

40,000 was mainly a number based around family, mortgage, food, transportation, classes, hazard/maintenance(car/home/health/life) and conferences.

It would be interesting to see how low I could get that number while mitigating the natural risks of family life.

How much of that theoretical nest egg would you risk to investments? 70%? 30%?

Inflation chipping away your savings is a given, but investments that match or beat inflation have no guarantees.

How much of the savings would remain after 15 years? Would you still feel secure going back to work in your 16th year with no money in the bank for your car/home/health/life?