How the Growth Rate for Pensions Is Applied
When I enter a growth rate for a pension, is that growth rate applied immediately, even if I don't receive the pension for several more years?
Yes, the growth rate for the pension is applied immediately. The amount you enter as the payment is adjusted by the ‘Growth Rate of Pension’ starting this year. The amount then changes each year with that growth rate number. For example, if you enter a pension that pays $30,000 a year and the growth rate is entered as 2%, in 10 years the pension payment will be 30,000 * (1.02)^10 = $36,570.