Problem with Pension Income


When I load my wife's Pension, the income decreases each year, even though I check "Today's Dollars."


If the pension has cost of living increases (inflation protection), you need to input how much in the "degree of inflation indexation annual benefit" field.

For example, if you input 4% for inflation overall (assumptions tab) and your pension COLA matches the 4%, then input 100%. If your pension COLA is 2%, then input 50% (half of the inflation rate).



dan royer's picture

Yes, Brian is correct. Furthermore, since you might be entering it to begin sometime in the future, you have the option of entering as an amount relative to today's dollars, that is, denominated in today's dollars. Or you can enter simply as nominal dollars without the inflation adjustment.

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