Income events can be marked as “Inflation Adjusted” or “Fixed Amount” to adjust for Cost of Living.
Every income event can be designated as cost-of-living adjusted with the following defaults:
When an income event is inflation adjusted, the amount will increase with inflation each year, keeping your purchasing power the same over time. Some income sources such as annuities or pensions disbursed as fixed annual amounts, not adjusted for inflation, resulting in a decrease in purchasing power over time. The values in Retirement Planner are displayed in today’s dollars so income events designated as fixed amounts will appear to decrease over time.
These options are available only for recurring income events. Under "Amount Per Year", there is a drop down menu where you can select “Inflation Adjusted” or “Fixed Amount”. Inflation applied is set with the Assumptions section of Retirement Planner.