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QWin: Why does Quicken Lifetime planner show a higher pension amount than I entered in future dollar

Why does Quicken Lifetime planner show a higher pension amount than I entered in future dollars? Why pension is fixed and cannot go up with inflation.

 I entered 78000.00 with no cola starting at age 58 and the planner is showing ~85000.00 on the first year of collection. I believe is impossible that 78K will be worth 85K in the future.

 I hope someone can explain.

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Comments

  • Unknown Member
    edited October 2018
    OK I have looked at this, and this is what Quicken is doing.

    Quicken is applying you inflation rate to that amount every year until you get to the year that you stated it starts at.  After that point is where it starts using the cola rate.

    So if you want $78,000 say 10 years from now, you have to calculate the value of your money going down by that rate, for 10 years, and then enter that lower amount.
  • mshigginsmshiggins SuperUser ✭✭✭✭✭
    edited November 2017
    QPW said:

    OK I have looked at this, and this is what Quicken is doing.

    Quicken is applying you inflation rate to that amount every year until you get to the year that you stated it starts at.  After that point is where it starts using the cola rate.

    So if you want $78,000 say 10 years from now, you have to calculate the value of your money going down by that rate, for 10 years, and then enter that lower amount.

    Well that is super convenient.
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • Unknown Member
    edited November 2017
    QPW said:

    OK I have looked at this, and this is what Quicken is doing.

    Quicken is applying you inflation rate to that amount every year until you get to the year that you stated it starts at.  After that point is where it starts using the cola rate.

    So if you want $78,000 say 10 years from now, you have to calculate the value of your money going down by that rate, for 10 years, and then enter that lower amount.

    Yeah, and here is one that goes in the opposite direction.

    Say you want to plan on buying a car every 10 years in today's money figure $30,000.
    You select Expenses -> Special Expense -> New
    The first thing that you notice is inflation isn't mentioned.

    And sure enough if you put in $30,000 for 10 years it just uses the $30,000 for the amount in future values.  And in today's values it will be lower than $30,000 depending on the inflation rate you have set.

    Well it is an asset so how about recording it there?
    It looks more promising there is a place to put in the inflation rate, but no, it is what it is going to do after you acquire it, just like on the pension.
  • ANONIEM PERSOONANONIEM PERSOON Member ✭✭
    edited July 2018
    QPW said:

    OK I have looked at this, and this is what Quicken is doing.

    Quicken is applying you inflation rate to that amount every year until you get to the year that you stated it starts at.  After that point is where it starts using the cola rate.

    So if you want $78,000 say 10 years from now, you have to calculate the value of your money going down by that rate, for 10 years, and then enter that lower amount.

    Exactly.  The "Edit Pension" window does have "(today's value)" after the entry box, but it's odds-on that whoever coded this has never seen a real pension estimate. 

    Seems easy enough to add the option of using either today's or future value - is there any way to know if that has been or would be considered?

    With a little work, the Lifetime Planner could be a particularly useful tool.  Silly faults such as this pension input, RMD errors, and SS problems mentioned elsewhere, however, make it difficult to recommend.

    With all the financial information available within the program, Quicken could easily compete with (or partner with, depending on corporate strategy) web-based tools that currently require manual entry (perhaps taken from Quicken reports).  Could be a solid functionality increase, if only....
  • mshigginsmshiggins SuperUser ✭✭✭✭✭
    edited November 2017
    QPW said:

    OK I have looked at this, and this is what Quicken is doing.

    Quicken is applying you inflation rate to that amount every year until you get to the year that you stated it starts at.  After that point is where it starts using the cola rate.

    So if you want $78,000 say 10 years from now, you have to calculate the value of your money going down by that rate, for 10 years, and then enter that lower amount.

    Yes, just like the bill reminds have been improved in QW2018, the loans were improved in QW2013, and the budget was improved in QW2012. No thank you.
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
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