Author Topic: cFIREsim; Social Security question  (Read 1417 times)

smithy

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cFIREsim; Social Security question
« on: June 11, 2015, 02:36:08 PM »
Hi,

Looking for some help with the Social Security parameter in cFIREsim. I am based in the UK, so I need to input the UK state pension equivalent for this. Like SS, the UK State Pension will rise with inflation (if it still exists when I am old enough to claim it!). Currently, the maximum you can get (based on achieving the maximum number of qualifying years) is about 7500 per year.

So if I expect to receive the maximum State Pension in 30 years time and assume inflation is on average 2% per year, should my SS parameter in cFIREsim be: 7500*(1.02^30)=13,585? ie: When someone based in the States goes to the SS Retirement Calculator as suggested in the cFIREsim FAQs (http://ssa.gov/retire/estimator.html), does this calculator give you an inflation adjusted estimation of what you are likely to receive?

Cheers.

Retire-Canada

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Re: cFIREsim; Social Security question
« Reply #1 on: June 11, 2015, 03:54:27 PM »
I use the current [2015 $$] value for my expected CDN gov't pension scheme benefits in cFIREsim. My understanding is that those values are inflation adjusted along with the rest of the data during the analysis and that all results are reported in present value for ease of comparison.

forummm

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Re: cFIREsim; Social Security question
« Reply #2 on: June 12, 2015, 09:22:55 PM »
Yes, you can use the value in today's dollars and say that it's adjusted for inflation. cFIREsim uses today's dollars for all (I think all) its inputs and outputs. SSA provides the value for me in today's dollars. It sounds like your agency does the same for you.