social security cola adjustments

A retirement planning tool is only as good as its assumptions and inputs. Share your thoughts or ask questions about the internals of the simulation, built in planner assumptions, or planner inputs.
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johngcookie
Posts: 2
Joined: Sat Feb 07, 2015 9:59 pm

social security cola adjustments

Post by johngcookie » Sat Feb 07, 2015 10:08 pm

I have entered my current social security amount in the "additional inputs," and then "track inflation." When I run the simulation, the social security payment doesn't change from year to year. I tried putting in a 2.5% COLA, but that doesn't work either. Is there something I'm missing. Thanks.

jimr
Posts: 544
Joined: Thu Feb 28, 2008 6:48 pm

Re: social security cola adjustments

Post by jimr » Sat Feb 07, 2015 10:15 pm

The planner shows all dollar amounts in 'today's value' dollars. So the fact that the amount doesn't change indicates it's keeping up with inflation.

For a test, you could try setting it up as NO COLA and you'd see the amount shrink over time, which represents the diminishing purchasing power of a no cola cash flow.

johngcookie
Posts: 2
Joined: Sat Feb 07, 2015 9:59 pm

Re: social security cola adjustments

Post by johngcookie » Sat Feb 07, 2015 10:19 pm

That's cool. Thanks!

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