FAQ: How Do I Increase the Inflation Rate used on the Platform?

We use FP Canada projection assumption guidelines for long-term inflation assumption. We also pre-calculate all future tax rates and benefit rates to help increase the speed of the model. This is why inflation is set and updated once per year when new guidelines are released.

We recommend using the Success Rate chart to evaluate how your plan will fair during past periods of inflation rates and investment returns. This chart includes periods of high inflation and low real investment returns like the 1970’s. This will provide a much clearer picture of how your plan will perform during periods of low real returns.

To simulate lower real returns you can always decrease the investment return assumptions to provide a lower real return vs inflation, but again, we do not recommend this as it can lead to decisions that are too conservative.