SOURCE: Live Long Live Rich

March 03, 2008 08:30 ET

New Inflation Index for Retirees Surges: The RRI for January: 4.45 Percent; Surging Consumer Prices Blowing up Seniors' Retirement Spending Expectations

RADNOR, PA--(Marketwire - March 3, 2008) - U.S. consumer prices accelerated across the board last month as stubbornly elevated price pressures put seniors' retirement incomes at risk.

Consumer prices matched the biggest increase since September of 2005. The core CPI rate is at its highest annual rate since last March. Producer Prices also came in at twice expectations.

The expenditures most affecting seniors rose sharply above the core rate; Medical Care costs rising 0.5%, Food costs rising 0.7%, Energy costs rising 0.7%.

Healthcare spending will grow on average 6.7% in the next decade, doubling to $4.3 trillion by 2017. In 2008, Social Security only increased for seniors 2.3%.

Retirement Specialist and Accredited Wealth Management Advisor H Craig Rappaport, using statistical data and guidance provided by the Bureau of Labor and Statistics, releases the Rappaport Retirement Index. The Rappaport Retirement Index is the first inflation index for financial planners, retirees and soon-to-be retirees needing to know how to plan and invest to create and accurately calculate their retirement income needs.

The Rappaport Retirement Index is the only forward-looking inflation index for retirees which takes into account, not only the current inflation data, but how that data may change and affect spending patterns in the future.

The Department of Labor has gathered inflation data for the elderly and calculated an inflation index for this group for over 25 years but does not release the results. It is called the Consumer Price Index for the Elderly. It is, along with the CPI, not forward looking and therefore inherently flawed for planning purposes. The Rappaport Retirement Index uses the CPI-E data to calculate a forward looking and useful index for real people doing real planning and having to live with the consequences of their actions.

H Craig Rappaport, the author of "Live Long Live Rich-Creating Your Retirement Paycheck," specializes in retirement. Rappaport has appeared in the Wall Street Journal, Fox News, CNN Headline News, The Dow Jones News Service as well as many television shows, magazines, newspapers and can be heard on the radio daily.

For further information contact: Craig Rappaport at 610-812-5800, via email at Rappaport @ or through the website at Live Long Live Rich. For the latest index reading visit: Rappaport Retirement Index, Press Information at Press/Media.

Contact Information