social security cola adjustments

[johngcookie]

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]

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]

That's cool. Thanks!