Enhance Pension Plan Modeling to include distinct inflation adjustments | ProjectionLab on changemap

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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

2 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
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
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