State Pension in future value

Q. How do I show the state pension in future value?

 A. 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 usually quoted in 'present value' terms, meaning that it is expected to be inflated between now and the time at which it will be paid.

In the event that you wished to enter the State Pension in 'future money', i.e. as the actual amount that would be received, one would need to 'discount' the 'future value' (using the higher of your NAE, or RPI preference setting, or 2.5%), in order to arrive at the 'present value' of the state pension, and input that figure.