Delawaredave5
Full time employment: Posting here.
- Joined
- Dec 22, 2004
- Messages
- 699
I'll have a non-COLA DB pension.
Is there a way to figure out how much you'd need to "set aside" each year to offset inflation in future years ? The goal is to "mimic" a COLA pension.
Example: Given a $10,000 /year DB pension. 3% inflation. 5% investment return. 30 year life expectancy.
I'm trying to understand the amount you can spend the first year, then spend the equivalent inflation-adjusted amount in future years.
I tried to model with some spreadsheets -- looks like one could spend around $7,000 first year and increased 3% more each year to offset inflation over a 30 year period.
Is there a way to figure out how much you'd need to "set aside" each year to offset inflation in future years ? The goal is to "mimic" a COLA pension.
Example: Given a $10,000 /year DB pension. 3% inflation. 5% investment return. 30 year life expectancy.
I'm trying to understand the amount you can spend the first year, then spend the equivalent inflation-adjusted amount in future years.
I tried to model with some spreadsheets -- looks like one could spend around $7,000 first year and increased 3% more each year to offset inflation over a 30 year period.