Does Inflation affect Senior Citizen differently?

The U.S. Bureau of Labor Statistics (BLS) thinks so. Ever since the early 1980s, the agency has calculated a separate consumer price index for elderly consumers (CPI-E), which can more accurately reflect the spending habits of older Americans. This is because housing presents a greater expense for the elderly, when you consider many pay high fees for assisted living and nursing home care. Health care expenses can assume a greater proportion of the elderly household budget than for the rest of the population. The CPI-E takes this expense into consideration and applies greater weight to this category when determining the rate of inflation. Since its inception, housing and health care costs have risen at a faster rate than other weights, such as transportation, education and food.1 

Social Security benefits, however, are automatically adjusted for inflation each year against the CPI-W, a measure that captures price changes in the average set of goods purchased by urban consumers. So the adjustments to Social Security benefits are based on wage earners and clerical workers. But as you can see, this inflation adjustment may not accurately help retirees keep pace with the rate of their own inflation.2 

There has been some speculation that Social Security benefits should be adjusted using the CPI-E or other inflation measure that more accurately reflects the spending habits of the elderly rather than working Americans. Yet with all of the brouhaha concerning the federal budget and the national deficit, the current sentiment is headed in a different direction. In fact, President Obama's Administration has proposed changing the basis for Social Security inflation adjustments to the "chained CPI" in order to slow the growth rate of benefits. The chained CPI takes into account consumers' tendency to substitute higher inflationary items with lower-cost alternatives when necessary, thus yielding a lower rate of inflation growth.3

Unfortunately, for retirees, their inflationary items - such as medical care and senior housing - do not lend themselves as efficiently to shopping for lower-cost alternatives of equal quality. 

Bureau of Labor Statistics, "Current Price Topics: The Experimental Consumer Price Index for Older Americans," February 2012; .
Bloomberg Businessweek, Why 'Chained CPI' Rattles the Elderly (and .

Info compliments of Andre Rafal

Your Digital Life when you die

What happens to it?

Policies surrounding death vary among some of the internet’s most prominent companies:

  • Twitter will deactivate an account upon the request of an estate executor or a verified immediate family member once a copy of a death certificate and other pertinent information is provided.
  • Facebook has two options. First, the site enables profiles to be turned into memorials. The account is locked, but other users can still interact with the deceased’s profile by posting comments, photos and links.  The other option is to remove the account, upon special request by an immediate family member or executor.
  • Google has recently established a new feature called “inactive account manager,” which prompts users to decide the fate of their accounts should they die. If the account user does not make a selection, Google’s policies are pretty strict. It warns survivors that obtaining access to a deceased person’s email account will be possible only “in rare cases.”

Wading through different policies for every account can be difficult, especially since most people do not designate someone to take care of their digital accounts in case of death. The issue is further complicated depending on the state.  Along with Virginiasix other states have laws governing access to the digital assets of the deceased – Connecticut,Rhode IslandIndianaOklahomaIdaho and Nevada.

Do You Have a will?

I know you think you'll live forever, but the reality is that you won't.  Every year the vast majority of Americans who die do so with having prepared a valid last will and testament.  For the past 3 decades that number has hovered between 70 and 80%1

My late daughter-in-law died in her 40's, my stepmother in her 30's and believe me those of us left behind had a mess to unscramble.

Federal law has incentives so we can let our wishes be known: child custody, property distribution and our last wishes.  A carefully planned will can actually minimize the costs to your estate.

If you haven't talked to your adult children about your wishes or your parents haven't talked to you, encourage them to where they can fill in their desires without having to discuss it.  For some folks, this is easier than face to face.  It also means it's accessible to family members who live far away.

Naturally you have to give them the information for them to access your directives, it seems pretty secure from prying eyes.

Five hearing tech announcements that could benefit older adultsPosted: 12 Sep 2016 07:20 AM PDTHearing technology advances -- the hearing aid industry considers changing. It’s a positive when you see disruption of industries that have too tight a lock on the consumer, whether it is in categories of health insurancetelecom carriers or hearing aids.  You spend time with people everywhere you go – those with significant hearing loss but no hearing aids; they have hearing aids, but hate to wear them.  According to a recent NY Times article, two-thirds of adults over 70, but only 15-30% of those wear them – and at $5000 a pair, no wonder. In recent years, personal sound amplification products(PSAPs) that are not classified as hearing aids and thus do not require the audiologist role, though the FDA may change that. Just asking, if the device is called a 'Wearable,' does Silicon Valley find it more worthy of funding?  But anyway. In July, Consumer Reports published an explanatory guide that should be required reading for organizations that serve older adults. It would seem to be the wild west of innovation.  Here is a sampling of five recent product announcements:ReSound. The firm "introduced a new model to the award-winning ReSound LiNX2™ family: the world's only mini behind-the-ear (BTE) model to feature Made for iPhone. In addition, the mini BTE also features telecoil capabilities. ReSound LiNX2 is the world’s first internet-connected hearing aid, connecting to the internet to locate misplaced hearing aids. This new model enhances the award-winning ReSound Smart Hearing portfolio, giving users even more choices to meet individual preferences and hearing loss needs." Learn more at Resound.Oticon. 

"Technological limitations of current hearing aids have led to the use of tunnel directionality: Speech coming from the front is clear, whereas the rest of the sound environment is suppressed. This results in a limited, narrowed and artificial listening experience. With new, groundbreaking technology, Oticon Opn™ is fast and precise enough to analyse and follow the soundscape and differentiate between sounds. Even in complex listening environments, this allows Oticon Opn™ to constantly open up and balance individual sounds to deliver a rich and meaningful soundscape, empowering the brain to choose on which sounds to focus." Learn more at Oticon.

Silicon Valley based startup that "offers an entry-level rechargeable hearing aid (FDA class I medical device) that it sells directly to consumers. Eargo is a near-invisible in-the-canal device offering four volume settings. Developed by a French ENT, it features patented silicone “flexi-fibers” that enable the device to sit comfortably deep in the ear canal while letting air and natural sound flow freely to the eardrum. At $1,980 per pair, the Eargo hearing aids are more expensive than many of the new off-the shelf “hearables” (classified as personal sound amplification products, or PSAPs, by the FDA), but less expensive than the higher end hearing aids fitted by audiologists." Learn more at

 "Cochlear Limited (ASX: COH), the global leader in implantable hearing solutions, announces today it has received U.S. Food and Drug Administration (FDA) approval for its newest innovative hearing loss solution, Kanso. The Kanso Sound Processor provides a distinct new way for cochlear implant users to hear. Unlike most hearing aids and current cochlear implant sound processors that are worn on the ear, Kanso is a small, off-the-ear hearing device  that provides a more discreet hearing solution and delivers the same hearing experience as a behind-the-ear sound processor." Learn more at Cochlear.

 "iHear® Medical announced today the launch of the world’s first online hearing solutions platform. The company begins taking orders today for its flagship invisible iHEARHD® hearing aid, and the iHearTest™, which recently received landmark FDA approval as the first and only home hearing screener. Delivery of iHear products starts July 15, 2016. The company also plans to launch the iHEARMAX™, a mini behind-the-ear hearing device, on August 15, 2016. iHear’s products are currently being offered in the U.S., with plans to introduce them in China and other markets in 2017." Learn more at iHearMedical.