What? This is why investment advice for retirement generally revolves around allocation into stocks and bonds while leaving only an emergency fund plus regular expenses in more liquid assets like savings accounts. Inflation will only eat your savings if you fail to invest. If you want to talk about risk, well, inflation is why a total failure to accept risk is extremely risky!
To take the extreme example, if everyone tried to save up and then take a sabbatical year in 2025, they would all find that their money became almost worthless -- they could buy capital goods (made before) but nothing else.
Before Paul Krugman metamorphozed into a political hack, he wrote some quite solid stuff about economics. His famous baby-sitting co-op [1] runs into this problem: Everyone wishes to earn tickets on weekdays / winter and spend them on weekends / summer, but this is impossible:
Now think about what would happen if there are a lot of old retired people but the number of people willing to work for them is 50% of what is required, in most branches of the economy.
Money will start chasing the workers, and they pay will sky rocket. It's more like SV skyrocketing housing prices and total compensation, bit wider in scope.
Why do you think that this will entirely fail to incentivize prospective retirees to work for more total years of their lives in order to benefit from increased pay?