Pension Anomaly

Submitted by james300@comcast.net on Mon, 01/16/2017 - 13:13

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I entered A pension for 2017 that is $17001 per year.
However, the "Pension Income" for 2017 in the report shows $17419. How is this calculated? For this profile run, I set the "degree of inflation indexation of annual benefit" to zero. "Current Inflation rate" is set to 4%. Regular assets growth is set to 1%
I also ran this profile with "Current Inflation Rate" and regular assets growth both set to zero and the 2017 Pension Income was the same $17419.
I don't understand the results. Shouldn't my 2017 pension in the report match what I've enetered?
Thanks
James Mavrogenis

Comments

dan royer

Mon, 01/16/2017 - 14:01

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IF the pension is entered to

IF the pension is entered to begin in the current year, it should be the same amount in the current year regardless of whether you use today's dollars or dollars (since both are the same in the current year). However, if you enter it in "dollars" for a future year, that amount you see in the report will show the higher amount in the table where you entered it, but will display as today's dollars in the report.

In Tools/Option are you set to view the current year? (2017)

If it is showing up as a higher amount in the report, it could be the sum of two pensions?

I guess I can't think in the abstract here why it would display as the higher amount. If I saw the database via support ticket, perhaps it would make sense to me.

Certainly you can remove it and reenter it just to make sure it's repeatable. But I'm not sure why it would add an inflation factor since it's entered for the given year in today's dollars or dollars.

james300@comcast.net

Mon, 01/16/2017 - 14:50

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Hi Dan, Thanks for the quick

Hi Dan, Thanks for the quick response. This pension changes each year based on stock market performance. Every January I delete the old pension amount and re-enter ther current year's amount.
The pension was entered for 2017 as today's dollars. In Tools/Options the current year,, 2017 is set. I looked back at the profile I ran late last year and found the same issue where the pension amount I entered had been inflated by ESPlanner. The amount I had entered for 2016 was $16122 but the report shows $16559. As you suggested, I deleted and re-entered $17001 and the report showed $17419.
I've checked results from 2015 using ESP ver 2.28.0 and it has the same problem; the 2015 pension in every profile I ran is higher than the amount entered for that year.
I'm going to setup a support ticket shortly and upload the database with this anomaly.
Thanks
James Mavrogenis