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Wednesday 2 May 2018

CPI INFLATION AND HOW IT ERODES OUR PENSION

In the chart sent by me earlier today, there was an error in the depreciated value of the financial asset shown  in the last column.
I have rectified the same and the revised chart is sent afresh.The actual erosion as per the correct calculations is much more than I had indicated earlier.
The average compounded  rate of inflation during the last 23 years was 6.8% p.a and the average compounded rate of erosion in capital value of a financial asset was 6.3% p.a. As a result ,the erosion in the value of basic pension is much more than what I had calculated earlier.
Greetings.
C H Mahadevan 





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