User:Whaleknives/Inflation and retirement spending

This is the article for inflation and retirement spending. The first draft of this article is still being prepared.

Inflation data

 * Department of Labor Consumer Price Index
 * InflationDatacom.
 * Federal Reserve Economic Data (FRED), from the Federal Reserve Bank of St. Louis. 39,000 economic time series from 38 sources. Download, graph, and track economic data. Downloadable tools, such an iPhone/iPad app and an Excel Add-In are available.

Overview of BLS Statistics on Inflation and Prices, retrieved July 31, 2016. Inflation can be defined as the overall general upward price movement of goods and services in an economy. BLS has various indexes that measure different aspects of inflation.

BLS statistics related to inflation:

Consumer Price Index The Consumer Price Index (CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. There are separate indexes for two groups or populations of consumers:

The CPI for All Urban Consumers (CPI-U) is the index most often reported by the national media. The CPI for Urban Wage Earners and Clerical Workers (CPI-W) is the index most often used for wage escalation agreements. The CPI Inflation Calculator allows users to calculate the value of current dollars in an earlier period, or to calculate the current value of dollar amounts from years ago.

Consumer price indexes often are used to escalate or adjust payments for rents, wages, alimony, child support and other obligations that may be affected by changes in the cost of living. There is a fact sheet explaining how to use the CPI for escalating contracts.

An additional price index called the Chained Consumer Price Index (C-CPI-U) is also available. This measure is designed to be a closer approximation to a "cost-of-living" index than the CPI-U or CPI-W.

Producer Price Indexes The Producer Price Indexes (PPIs) are a family of indexes that measure changes in the selling prices received by domestic producers of goods and services. They formerly were referred to as Wholesale Price Indexes. When the PPIs are released, the news media will most often report the percentage change in the index for Finished Goods.

Producer Price Indexes also can be used in escalation contracts. A fact sheet explaining the details is available.

Import and Export Prices The International Price Program measured change in the prices of imports and exports of nonmilitary goods between the United States and the rest of the world.

Employment Cost Trends This program publishes quarterly statistics that measure change in labor costs (also called employment costs or compensation costs) over time; quarterly data measuring the level of costs per hour worked are also published. Indexes are available for total labor costs, and separately for wages and salaries and for benefit costs. Some information is available by region, major industry group, major occupational group, and bargaining status.

Contract Escalation Consumer Price Indexes, Producer Price Indexes, and the Employment Cost Index may be used to escalate contracts. See the Contract Escalation page for more information.

Price and Index Number Research The Price and Index Number Research (PINR) division conducts research to strengthen and improve existing price and expenditure measurement concepts and techniques and enhance the analytical usefulness of BLS programs.

Consumer Price Indexes (CPIs) for Other Countries Consumer price indexes as published by individual countries, unadjusted for comparability, as well as harmonized indexes for a smaller selection of countries. (The International Labor Comparisons program has been discontinued.)

Social Security Administration benefit calculators

 * All earnings are indexed to the national average wage index (AWI). Future earnings are indexed with estimated increases in the AWI. Earnings are indexed only to age 60 (two years prior to the first year of eligibility, 62); later earnings are used at face value. These increases are derived from the "intermediate" assumptions in the 2015 OASDI Trustees Report.
 * Although Social Security documentation suggests that future benefits are increased with estimated cost-of-living adjustments (COLAs), the estimates from my Social Security, Retirement Estimator, and the default Detailed Calculator (AnyPIA) do not project benefit increases beyond the current year. AnyPIA does offer the following increased benefit options:
 * 1) Alternative I (optimistic) assumptions from the most recent OASDI Trustees Report.
 * 2) Alternative II (intermediate) assumptions from the Trustees Report.
 * 3) Alternative III (pessimistic) assumptions from the Trustees Report.
 * 4) No benefit increases after the last known increase (default).
 * 5) User-specified benefit increase for each projected year.

Automatic Determinations, Office of the Chief Actuary

Several important parameters affect Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program and the Supplemental Security Income (SSI) program. We determine these parameters each October by following formulas set by law. Two important parameters are the national average wage index and the cost-of-living adjustment (COLA). COLAs and wage-indexed amounts for recent years are summarized in a table. The table's column headings provide links to more detailed data.

We use the national average wage index to "index" earnings for initial benefit computations and to determine several wage-indexed amounts that primarily affect the OASDI program.

COLAs provide annual increases in payments from OASDI and SSI programs.

Automatically increased amounts, as described above, are published in the Federal Register in late October. Choose the fourth selection if you do not want any future average wage increases. This is the recommended assumption for projecting future benefits. You can compare a benefit estimate with no future inflation to your current income and expenses for retirement planning.

AnyPIA

Choose the fourth selection if you do not want any future average wage increases. This is the recommended assumption for projecting future benefits. You can compare a benefit estimate with no future inflation to your current income and expenses for retirement planning.

No future average wage increases (Assumptions form) The stored average wage increases for this selection are initially set to zero for all years after the last known average wage. This is the recommended assumption for projecting future benefits. You can compare a benefit estimate with no future inflation to your current income and expenses for retirement planning.

No future benefit increases (Assumptions form) The stored benefit increases for this selection are initially set to zero for all years after the last known benefit increase. This is the recommended assumption for projecting future benefits. You can compare a benefit estimate with no future inflation to your current income and expenses for retirement planning.

There are 37 free and 13 priced retirement calculators listed in the Bogleheads Wiki. The inflation approach for these 50 can be summarized as

Free retirement calculators

 * {|border="2" cellspacing="0" cellpadding="4" width="100%"


 * align = "center" width="15%" rowspan = "2"|Calculator Name
 * align = "center" width="10%" rowspan = "2"|Calculator Type
 * align = "center" width="10%" rowspan = "2"|Initial Retirement Spending
 * align = "center" width="50%" colspan = "5"|Spending Model as Retirement Progresses
 * align = "center" width="15%" rowspan = "2"|Inflation
 * align = "center" width="10%"|Constant Real
 * align = "center" width="10%"| Retirement Stages
 * align = "center" width="10%"|Returns Dependent
 * align = "center" width="10%"|Flexible Spending
 * align = "center" width="10%"|Life Cycle
 * align = "center" width="10%"|Life Cycle


 * AARP Retirement Calculator
 * align = "center"|Det
 * align = "center"|RepR
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * American Funds Retirement Planning Calculator
 * align = "center"|Det
 * align = "center"|RepR
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * AnalyzeNow! Free Retirement Planner
 * align = "center"|Det
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * Ballpark E$timate Calculator
 * align = "center"|Det
 * align = "center"|RepR
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Crowdsourced FIRE Simulator
 * align = "center"|HRet, Det, MC
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * ESPlannerBASIC
 * align = "center"|Det
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|X
 * Fidelity Retirement Income Planner
 * align = "center"|MC
 * align = "center"|DTot, DWks
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * Financial Engines
 * align = "center"|MC
 * align = "center"|RepR, DWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * FINRA Retirement Calculator
 * align = "center"|Det
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * FIRECalc 3.0
 * align = "center"|HRet, Det, MC
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * Flexible Retirement Planner
 * align = "center"|MC, Det
 * align = "center"|STot, DTot
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * Forecaster for Retirement and Estate Planning
 * align = "center"|Det, MC
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * HARS – Historical Actuarial Retirement Simulator
 * align = "center"|HRet
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * ING Retirement Needs Calculator
 * align = "center"|Det
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Mainstay Retirement Planner
 * align = "center"|Det
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Moneychimp M.C. Calculator
 * align = "center"|MC
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Money-Zine.com Retirement Calculator
 * align = "center"|Det
 * align = "center"|RepR
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Motley Fool "Am I Saving Enough?"
 * align = "center"|Det
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * MSN Money Retirement Planner
 * align = "center"|Det
 * align = "center"|RepR
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Nestful Financial Planner
 * align = "center"|Det
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Optimal Retirement Planner
 * align = "center"|Det, MC
 * align = "center"|N/A
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * Prudential Retirement Planning Calculator
 * align = "center"|Det
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Reality Retirement Calculator
 * align = "center"|Det
 * align = "center"|RepR
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Retiree Portfolio Model (Forum discussion thread)
 * align = "center"|Det
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * Retrian Expert/Family/Lifetime
 * align = "center"|
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Schwab Retirement Savings Calculator
 * align = "center"|MC
 * align = "center"|RepR, STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Scottrade Retirement Calculator
 * align = "center"|MC
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * SmartMoney Retirement Planner
 * align = "center"|Det
 * align = "center"|RepR, STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * TD Ameritrade WealthRuler
 * align = "center"|MC
 * align = "center"|STot, RepR
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * T. Rowe Price Retirement Income Calculator
 * align = "center"|MC
 * align = "center"|RepR, STot, SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * TIP$TER
 * align = "center"|HRet, MC
 * align = "center"|STot, DTot
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * Ultimate Retirement Calculator
 * align = "center"|Det
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * U.S. Dept. of Labor Retirement Calculator
 * align = "center"|Det
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Vanguard Nest Egg Calculator
 * align = "center"|MC
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Vanguard Retirement Income Calculator
 * align = "center"|Det
 * align = "center"|RepR
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Variable percentage withdrawal
 * align = "center"|HRet,HStr
 * align = "center"|N/A
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * Voyant Financial Calculator
 * align = "center"|Det, MC, HRet
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * }
 * align = "center"|
 * TIP$TER
 * align = "center"|HRet, MC
 * align = "center"|STot, DTot
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * Ultimate Retirement Calculator
 * align = "center"|Det
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * U.S. Dept. of Labor Retirement Calculator
 * align = "center"|Det
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Vanguard Nest Egg Calculator
 * align = "center"|MC
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Vanguard Retirement Income Calculator
 * align = "center"|Det
 * align = "center"|RepR
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * Variable percentage withdrawal
 * align = "center"|HRet,HStr
 * align = "center"|N/A
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * Voyant Financial Calculator
 * align = "center"|Det, MC, HRet
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * }
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * Voyant Financial Calculator
 * align = "center"|Det, MC, HRet
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * }
 * align = "center"|
 * }
 * }

Purchased retirement calculators
Most of these retirement calculators have Trial Versions that can be used before a final purchase decision. Sometimes the trial version has restricted capabilities. In other cases the trial version is fully functional, but only works for a limited time period.


 * {|border="2" cellspacing="0" cellpadding="4" width="100%"


 * align = "center" width="15%" rowspan = "2"|Calculator Name
 * align = "center" width="10%" rowspan = "2"|Calculator Type
 * align = "center" width="10%" rowspan = "2"|Initial Retirement Spending
 * align = "center" width="50%" colspan = "5"|Spending Model as Retirement Progresses
 * align = "center" width="15%" rowspan = "2"|Inflation
 * align = "center" width="10%"|Constant Real
 * align = "center" width="10%"| Retirement Stages
 * align = "center" width="10%"|Returns Dependent
 * align = "center" width="10%"|Flexible Spending
 * align = "center" width="10%"|Life Cycle
 * align = "center" width="10%"|Life Cycle


 * AnalyzeNow! Pre & Post Retirement Planner
 * align = "center"|Det, HStr
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * eFinPLAN
 * align = "center"|Det, MC
 * align = "center"|SWks, RepR
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * ESPlannerBASIC
 * align = "center"|Det, MC
 * align = "center"|STot
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * ESPlanner
 * align = "center"|Det
 * align = "center"|SWks
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * ESPlannerPLUS
 * align = "center"|Det, MC
 * align = "center"|SWks
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * J&L Financial Planner Professional
 * align = "center"|Det, MC, HRet
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * Money Tree: Silver Financial Planner
 * align = "center"|Det, MC
 * align = "center"|SWks, DWks
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * Money Tree: TOTAL Planning Suite
 * align = "center"|Det, MC
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * Otar Retirement Calculator
 * align = "center"|HRet
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * Pralana Retirement Calculator
 * align = "center"|MC
 * align = "center"|SWks
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|X
 * Real World Retirement (RWR)
 * align = "center"|Det, MC
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|X
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * Simple Planning Retirement Planner
 * align = "center"|Det
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * VeriPlan
 * align = "center"|Det
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * }
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * Simple Planning Retirement Planner
 * align = "center"|Det
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * align = "center"|
 * VeriPlan
 * align = "center"|Det
 * align = "center"|SWks
 * align = "center"|X
 * align = "center"|
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * }
 * align = "center"|
 * align = "center"|X
 * align = "center"|
 * }
 * }