Even though health expenses can be expected to rise, perhaps at around 5 to 7 percent annually, those increases may be more than offset by declines in other categories, relative to an overall assumption that all expense categories in retirement stay fixed in inflation-adjusted terms. Constant inflation-adjusted spending is a simplifying and conservative assumption that can more than handle the issue of health expense growth in retirement. In other words, you have taken care of this aspect of health spending risk already if you use a simplified assumption that your overall retirement budget
...more
