How do I set up a Defined Benefit Pension

Question

I have a pension that will provide a defined monthly pay out. I don't have the total cash value, only the estimated monthly payment. I would like to set it up as an asset for the purposes of tracking as a retirement account, but I don't see an option to create an asset of this type.

Frankx · Answer

Hi @Jmosmc1972

If you want to go "all-in" on doing the calculations - take a look at the information provided in this LINK.  It may be a little too precise, but the discussion will give you some idea of the many factors that you might want to consider and the formulae that you could use to record the value of the DB pension.

Frankx

Jim_Harman · Answer

Like Social Security, a defined benefit pension is not like other assets, since you can't sell it for cash. But if you want to assign it a cash value, you could set up an asset account with a value equal to the cost of a deferred annuity with the same terms as your pension. You would add to it each year as your seniority grows and the amount payable increases.

A butter way to handle the pension might be to enter it into Quicken's Lifetime Planner as a future income stream.

Sherlock · Answer

Without a total cash value, I suggest you use a monthly income reminder.