Income and benefits
Model a pension or defined benefit
Translate a pension estimate into an annual stream with the correct start, growth, owner, and tax treatment.
When this applies
Use this for an employer pension or other defined monthly lifetime benefit.
What to gather
- Gross monthly or annual benefit.
- Start date.
- Owner and provider.
- COLA rule.
- Tax treatment and survivor continuation reflected by the actual plan.
Where to enter it
Portfolio > Scenario Editor > Income & Benefits > Add Income or Benefit
How to enter it
- Choose Pension or Defined benefit.
- Convert a monthly quote to Annual amount by multiplying by 12.
- Choose the owner, provider, start rule, and Ongoing end rule unless the benefit actually stops.
- Leave growth blank for inflation, enter zero for no COLA, or enter the plan COLA.
- Leave ordinary-income taxation on for a typical taxable pension.
How YARCalc uses it
- The annual amount joins household cash flow while the owner is alive and the stream is active.
Check your work
- Run Projection and confirm the named benefit begins in the intended year.