Originally Posted by linny727
My pension has a COLA of 2% and will cover my expenses and allow for savings and fun. I'll also have an emergency fund of $10k. My medical is 100% paid for by employer. I have a 457 but will be cashing it out to purchase a home, it's small - will be about $75k in June 2014. I'm retiring in June 2014.
Hmmmm, I don't see any direct way to model a fixed 2% 'COLA-lite' in FIRECALC.
Basically, you have close to zero portfolio, so if long-term inflation exceeds 2% (likely), your spending will need to be adjusted downwards over time. For an early retirement, inflation can be a huge factor. And/or build up some buffer by saving some of it in the early years.
You could enter your pension as non-inflation adjusted starting this year, and then in 13 years enter an amount to show the added 2% compounded, and do it again after 26 years (splitting a 40 year retirement). That's not perfect as it doesn't include the previous 13 years increases, and there are only three entries allowed. You could add some lump-sum additions on the "Portfolio Changes" page to compensate.
Bottom line is, I expect you will need to trim your initial spending significantly lower than the total pension, and save some of that against future inflation.