This version of the EDHEC-Princeton Retirement Goal Price Indices represents the minimum capital needed to secure a capital of $1, plus possibly an adjustment for the cost of living, in January 2028. In other words, the index is the price of a zero-coupon bond that pays $1, plus possibly an adjustment for the cost of living, in January 2028.
The index moves every month as the retirement date approaches and as interest rates fluctuate. As a general rule, lower rates imply greater index values, meaning that securing capital is more costly, while higher rates result in lower index values.
The index value can be used to measure the capital that can be secured with a given amount of savings: the purchasing power of savings is obtained by dividing the capital by the index value.
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Historical values
This figure displays the values of two Goal Price Indices since January 2018. The index with no adjustment is the present value of a capital equal to $1. The index with a cost-of-living adjustment is the present value of a capital equal to $1 plus an annual 2% cost-of-living adjustment.
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Data download
Monthly values
Document download
Index construction rules
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