Income events can be marked as 'Increased with inflation each year' or 'Fixed Amount, not increased with inflation' to adjust for Cost of Living.
Every income event is 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 are 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 the specific option you prefer. The amount of inflation applied is set with the value found in the 'Edit Assumptions' section of Retirement Planner.