- Adjust for an assumed inflation rate of 2.5% by multiplying this number by an 'inflation factor'.
Folks,
Let's not forget, there's official inflation and then there's real inflation... No point in measuring inflation across a basket of goods and services, if your going to need different goods and services.
Health Insurance / Medical Costs, aren't running at 1.5% - 2.5% pa.
Let's not forget, there's official inflation and then there's real inflation
Yes you’re right, it matters a lot and I agree with what you’ve said.
However, because I work in the industry, I am mindful of compliance since the SORP guidelines (Statements Of Reasonable Projection) issued by the society of actuaries in Ireland state that the assumed figure to be used for inflation and/or CPI on any projections should be between 2% - 3% so I’ve taken 2.5% as the median.
These guidelines primarily apply to the statements sent to consumers and members of schemes so, it’s not that I’m ignoring the reality of the current inflation rate in Ireland, or indeed over the last 12 years as you say, I’m just sticking to the guidelines is all.
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