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 assumed that the value you have entered is a 'present value' and therefore it will be indexed between the present time, and the point where state benefits commence.

It is assumed that the benefits will increase by the higher of the National Average Earnings (NAE) rate set in Preferences, the Inflation rate set in Preferences, or 2.5% - the 'triple lock'. The value you see in the Ledger therefore, is simply the figure you entered rolled-up over the years, until commencement of the pension.

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, you will need to multiply the benefit estimate or current benefit by 52 and then enter it.