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Social Security on Tabular Projections--Income

 

(@tchamber236)
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Joined: 5 months ago
Posts: 2
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I'm struggling with two things in the Social Security income stream on the income table. Set to Today$, I would expect it to be a constant dollar amount after the first year. That's how it shows in the manual. Instead, it declines substantially every year until it reaches about half the initial amount. If I put in a COLA tweak--say, -0.1%--in the input table, it behaves as I would expect, reducing the Today$ amount by a tenth of a percent every year. But when the COLA adjustment input is left blank the results make no sense. What am I doing wrong?

Second issue I have is with specifying my social security amount at FRA. I don't know what that is or how to get it. I'm 68, and expect to claim next year at 70. SSA reports the amount I am entitled to today, and the amount I will be entitled to next year at 70. But not my FRA amount. I can understand that since I passed that two years ago and it no longer has any meaning. I reverse engineered an amount and plugged it in, but I wouldn't think I should have to do that. Since I know the amount I will be entitled to next year, isn't there a way to just plug it in?


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(@smatthews51)
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Joined: 2 years ago
Posts: 345
 

Dame,

I don't know what you might be doing wrong such that it appears that you're not seeing a constant dollar amount when looking at SS benefits in terms of today's dollars. I verified on multiple versions that PRC is working correctly in this regard. If you'd send me (mail@pralanaconsulting.com) an export file or even a screenshot of the relevant pages I might be able to provide more help.

Your point is well taken about SSA reports not showing your FRA amount after you've passed that age but, no, there isn't a way to "just plug in" the amount you're expecting to receive UNLESS you do it via some other section of the Income page. PRC is designed to help you determine the best age to start benefits, and it does this by modeling all the alternatives based on your FRA amount. Also, PRC models spousal benefits and they're based on FRA amounts, so the tool needs that value to do its thing. If that's not important to you, you can simply enter the desired amounts in one of the Other Income streams.

Stuart


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(@tchamber236)
New Member Customer
Joined: 5 months ago
Posts: 2
Topic starter  
Posted by: @smatthews51

Dame,

I don't know what you might be doing wrong such that it appears that you're not seeing a constant dollar amount when looking at SS benefits in terms of today's dollars. I verified on multiple versions that PRC is working correctly in this regard. If you'd send me (mail@pralanaconsulting.com) an export file or even a screenshot of the relevant pages I might be able to provide more help.

Your point is well taken about SSA reports not showing your FRA amount after you've passed that age but, no, there isn't a way to "just plug in" the amount you're expecting to receive UNLESS you do it via some other section of the Income page. PRC is designed to help you determine the best age to start benefits, and it does this by modeling all the alternatives based on your FRA amount. Also, PRC models spousal benefits and they're based on FRA amounts, so the tool needs that value to do its thing. If that's not important to you, you can simply enter the desired amounts in one of the Other Income streams.

Stuart

Thanks, I figured out the first item. It happens when Historial Sequence Analysis is active; when that is inactive the social security benefits are consistent. I don't think that activating sequence analysis should affect social security, should it?

The second item isn't critical. In another year I'll be in payment status and I can just enter the payment I'm receiving.


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(@smatthews51)
Member Admin
Joined: 2 years ago
Posts: 345
 

@tchamber236 The historical sequence invokes both historical rates of return and historical inflation so, yes, it does affect Social Security.


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