Pension Decreasing at Inflation Rate
I have entered a pension with a given annual amount from Social Security covered employment and a 50% survivor rate.
I have set the inflation rate under Assumptions to 2%
No matter what I set the Annual Inflation Index to for the pension (0%, 2%, 4%) the Pension Income on the non-Asset Income Report drops by 2% per year. My expectation was that it would remain constant.
What am I missing?
Thu, 11/09/2017 - 07:39
If the pension gets a full
If the pension gets a full COLA adjustment each year per your assumed rate of inflation, enter 100%. If it gets no cost of living adjustment, enter 0%. If inflation, say, is set at 3% and your pension gets a 2/3rds adjustment (i.e. 2% in a 3% inflation environment) then enter 66%. etc.
It sounds like you want a 100% indexed to inflation setting.
Thu, 11/09/2017 - 12:11
Thanks Dan. That clears it up
Thanks Dan. That clears it up. This explanation would be good in the user manual.