Campaigner appeals for state pension release for dying people
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This would be a “significant boost” for pensioners during the cost of living crisis which has seen inflation and energy bills skyrocket to record highs. Yesterday, the UK’s Consumer Price Index (CPI) inflation rate dropped slightly to 9.9 percent. With the Government’s promise to reintroduce the triple lock, it is likely inflation will remain around this level which would see state pension payments go up by around £200 per week.
The triple lock is a Government pledge to raise the state pension by either the rate of average earnings, inflation or 2.5 percent.
It was created to guarantee pensioners that their retirement incomes would go up every year.
However, the triple lock was temporarily suspended during the COVID-19 pandemic to average earnings being artificially inflated as a result of the furlough scheme.
Instead, the Government opted for a “double lock” policy which meant state pension payments only went up by 3.1 percent in line with last September’s inflation figures.
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However, with inflation continuing to rise amid the cost of living crisis, pensioners are looking at a “significant boost” to their retirement incomes.
Some experts are estimating it could payments could be as high as £200 per week once the triple lock is fully returned.
If this rate hike were to be implemented, it would be introduced in April 2023 at the same time other benefit payments are raised.
With energy bills and the prices of everyday items continuing to go up, this payment boost would likely be welcome for the majority of older households.
Helen Morrissey, a senior pensions and retirement analyst at Hargreaves Lansdown, warned that sky-high inflation “looks set to stay” for the time being.
Ms Morrisey explained: “Inflation eased this month, but it still remains sky high and looks set to stay so for the foreseeable future.
“This means pensioners are in line for a significant pension boost next year as long as the government keeps its pledge to keep the triple lock.
“Yesterday’s wage data put average wage growth at 5.5 percent so pensioners are already in line for a record-breaking increase, albeit one that is well below inflation.”
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The finance expert highlighted how the return of the triple lock is the main reason older households could see their state pension payments go up by £200 next year.
She added: “If the link to CPI remains, then we could see pensioners on a full new state pension get more than £200 per week.
“Last year’s 3.1 percent increase was no match for soaring inflation and has left many pensioners struggling and so a more generous increase will be welcomed.
“However, any such increase will not kick in until April which feels a very long way away right now for those struggling to make ends meet.”
How much is the state pension currently?
Both the basic and new state pensions are paid into the bank and building society of the claimant’s choice every four weeks.
How much someone gets from their pension is dependent on their National Insurance contributions with someone needing at least 35 years under their belt to get the full amount.
Currently, the full new state pension stands at £185.15 per week, while the basic state pension is £141.85 per week.
It is possible to get a financial boost to your state pension payments if you are on low income by claiming Pension Credit.
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