n NISM Certifications
XVII NISM Series XVII
Medium

The inflation rate used to estimate future healthcare expenses in retirement is generally higher than the rate for other consumer costs, reflecting the rising costs of medical care.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 2 — 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 typically exceeds general inflation, driven by technological advances and increased medical service costs, impacting retirement planning.

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