n NISM Certifications
XVII NISM Series XVII
Medium

The inflation rate used for estimating health expenses in retirement is generally higher than that for other consumer costs, due to rising healthcare costs.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Same as used for all consumer costs

  2. B

    Lower than the rate of inflation applicable to consumer costs

  3. Higher than the rate of inflation applicable to consumer costs

    Correct answer

  4. D

    Similar but less taxes

Why this is the answer

Healthcare inflation tends to outpace general inflation, impacting retirement planning.

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