State Pensions - Figure in ledger is higher than the one entered in the pension amount field

Q. I have entered the State Pension figures but they show an increased figure in the ledger. Why is this?

A. In the case of state pensions it is understood that the value you have entered is a 'present value', which therefore will be indexed between the present time, and the point where benefits commence (to protect against inflation).

In Voyant, the State Pension is set to escalate, automatically, by the higher of one's National Average Earnings (NAE) assumption, RPI assumption, or 2.5% - the so-called 'triple lock'. This is in line with our understanding that the state pension forecast is ordinarily quoted in 'present value' terms, meaning that the figure will be inflated between now and the time when it will be paid. The value you see in the Ledger, therefore, is simply the figure you entered, rolled-up over the years, until commencement of the benefits.

State pensions (and anything else in the software that doesn't offer a monthly/yearly toggle) must be entered as an annual amount. So, if you have the weekly figure, one will need to multiply the value by 52, before inputting.