how to factor rising income into a future value calculation

Hi

Is there a way to factor rising income into FV calculations? I know the starting value and the starting income but I want to be able to inflate the income annually to keep pace with an assumed inflation rate.

I know how to do it as a series of calculations but what I want to do is give somebody the opportunity to put a future age in a cell and for the formula to give him his future fund value using annually rising income withdrawals up to that point.

The person I have in mind is currently 70. He has a starting fund value of £655,152. First year income will be £32,757 (withdrawn in monthly instalments but I can work with 1 annual withdrawal for this purpose). Assumed inflation/annual income increases is 2.5%pa.

Many thanks

Ian Jemmett

Thanks Richard. I get that.

I see now that I omitted one important piece of information, which is that the fund is performing. For this purpose, I usually assume 5%pa after charges return on the fund.

Is there a way of factoring that in as well, without doing a series of separate annual calculations?

Ian