CPI vs PPI...



For a 40 year withdrawal period there's about a 20% difference between SWR's when using the CPI vs the PPI. Which is likely to be the more accurate index? For what it's worth, we'll own a home and will have no debt in retirement, but we will be buying private health insurance for the first 15 years or so, and a supplemental policy after 65.


Because you will be buying private health insurance, and since health care is rising much faster than either the CPI or PPI, your personal rate of inflation may wind up being higher than either of them.

Your actual inflation adjustment needs will depend upon the percentage of your budget that is composed of things that can be purchased on the international market (e.g., televisions), and things that cannot be (e.g., health care). The more of your budget is composed of the former, the lower your personal rate of inflation will be.
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