Thanks to "Investor" over at FundAlarm:
"Inflation Rates and Retirement"
Milevsky claims that the CPI-W ("Workers") was 2.96% over the last 25 years (we're almost clear of the nasty 1980s numbers!) but that retirees had to contend with the CPI-E ("ERs"?) of 3.3%. In addition he claims that the CPI-E is rising faster than the CPI-W, mainly due to rising healthcare expenses.
"The bottom line is that we all have slightly different and personal inflation
rates based on spending habits and our desired basket of expenditures. As a
financial advisor your task is to make sure that your clients’ investments keep
up with their very personal inflation rate, not some macroeconomic average.
This is the true liability benchmark."
He also advises buying stocks in the pharmaceutical sector, biotechnology, healthcare, and nursing homes...