Suggestions

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Enhance Pension Plan Modeling to include distinct inflation adjustments

Pension plan options today outline how the pension plan amount will be initially calculated (e.g. highest salary %), but there isn’t an option to apply inflation adjustments to this number. For instance, my husband’s pension has an established .5% of inflation COLA built in; over 25 hrs of modeling not having that adjustment captured takes a serious bite out of our income estimates

4 votes

Tagged as Suggestion

Suggested 22 May 2023 by user Georgia Hoyler

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  • 22 May 2023 Georgia Hoyler suggested this task

  • 22 May 2023 Kyle Nolan approved this task

  • avatar
    Kyle Nolan

    For now, once you figure out the starting amount, perhaps you use a custom income stream that increases by 0.5% each year?

    In the long-run I do like the idea of adding more granular change-over-time controls to the embedded defined-benefit pension form though.

    22 May 2023
  • avatar
    Randy

    I’ll disable the defined benefit for my spouse that is associated with her income but it would be nice to have a check-box that allowed a defined benefit pension to be indexed to inflation.

    That’s approximately the pension that federal public service workers in Canada have: https://www.canada.ca/en/treasury-board-secretariat/services/pension-plan/retired-members/rate-pension.html

    In the US, it looks like only 13% of the population has a defined benefit pension: https://www.census.gov/library/stories/2022/08/who-has-retirement-accounts.html so maybe this feature isn’t a high priority for Kyle.

    02 March 2024
  • avatar
    David Spindler

    Agreed, I can work it around but it would be a nice to have. Texas Teacher Retirements System has no COLA :(

    02 January 2025
  • avatar
    Justin Burley

    Hey there! Recent monthly subscriber here that’s running into this same issue when trying to model my pension benefit from Florida’s Retirement System. Would love to be able to bake in the .95% yearly COLA increase that I’m projected to receive! Any update on this?

    28 December 2025