Entering Pension Income in WealthTrace

When entering pension income in WealthTrace, enter the future dollar amount you expect to receive when the pension begins.

Why Pension Income Is Entered in Future Dollars

Pension benefit estimates are typically presented as the actual dollar amount that will be paid at the future retirement date.

For example, if your pension statement says you will receive $4,000 per month beginning at age 65, enter $4,000 per month in WealthTrace.

WealthTrace assumes the pension amount entered is the amount you will receive when the pension starts. The program therefore does not inflate the pension amount from today to the pension start date.

Example

Suppose you are currently 55 and your pension administrator estimates that you will receive:

$48,000 per year beginning at age 65

You should enter:

Annual Pension Income: $48,000

Do not convert the $48,000 payment into today's dollars before entering it.

Pension COLA

If your pension includes a cost-of-living adjustment (COLA), enter the appropriate growth rate in WealthTrace. The growth rate determines how the pension payment changes after the pension begins.

Important Difference From Social Security

Pension income and Social Security income are handled differently in WealthTrace:

• Pension: Enter the expected benefit in future dollars at the time the pension begins.
• Social Security: Enter the benefit in today's dollars.

This difference reflects how pension estimates and Social Security estimates are normally presented to users.