During periods of higher inflation it is understandable to revisit the long-term inflation discussion used in retirement planning forecasts. It is important to note that different categories of spending inflate differently and households spend very differently at different ages. Therefore, households do not experience inflation to the same degree. For example, Transportation was the highest inflating category in 2021 at 21.4%. Households 75+ spend 4.5% less on Transportation than households ages 35-44 so may not have experienced this high inflation to the same degree. Likewise, Health care is a category that households spend more on at older ages. 2021 saw health care costs rise much more slowly than the historical average. When planning for retirement, be sure to use a long-term inflation assumption for spending that reflects the basket of goods a household actually buys and how that basket will change with age.