Exact amount state pension set to rise by next year revealed – and it’s good news for pensioners
THE state pension could go up next year by over 8% in a huge boost to household incomes.
Under the triple lock, the state pension is uprated in April by inflation for the previous September, wages or 2.5%, whichever is higher.
This means it is likely to be figures published later this month that could dictate the state pension rise in spring 2024.
This is as long as it is higher than the inflation figure in September.
Earnings growth figures released next Tuesday will be likely to determine next April’s increase in the state pension for the UK’s 12 million pensioners, according to the Institute for Fiscal Studies (IFS).
It is typically used as the measure of earnings for the pensions triple lock – and because it is also likely to be above both 2.5% and September's inflation figure.
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The report said data covering April to June 2023 showed annual earnings growth of 8.2%.
Meanwhile, the UK's inflation rate stood at 6.8% in July, down from 7.9% in June.
But rising wages could lead to a jump in inflation as a result of increased spending.
The base state pension rate is currently worth £203.85 per week.
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The triple lock is based on average earnings growth measured from May to July each year.
A Department for Work and Pensions spokesperson said: “The Government is committed to the triple lock.
"As is the usual process, the Secretary of State will conduct his statutory annual review of benefits and state pensions in the autumn, using the most recent prices and earnings indices available.”
In April, the application of the triple lock saw retirees given a 10.1% increase to match inflation.
Work and Pensions Secretary Mel Stride in May said that the triple lock pension commitment would remain in place until the next election.
But the Cabinet minister said he was not sure whether it would feature in the next Conservative manifesto.
The triple lock was introduced by the Tory-led coalition government in 2010 as a way of ensuring pensioner income did not lose value in real terms by offering state pension increases at least in line with inflation.
It has become seen as an important offer to older voters.
How much is the state pension in 2023?
State Pension payments were increased in April this year.
The full rate of the new State Pension has risen from £185.15 a week to £203.85.
This equates to £10,608 in total over a year.
This is what the state pays those who reach state pension age after April 6, 2016.
The full basic State Pension under the old system is now £156.20 per week in 2023/24.
This is paid under the old pension system and is for those who retired before April 6, 2016.
There is also the additional state pension under the old system, which is an extra payment on top of the basic state pension some are entitled to.
How much state pension will I actually get?
The amount of new state pension you receive depends on your National Insurance (NI) record throughout your adult life.
If you have made at least 35 years of qualifying NI contributions, you may qualify for the maximum amount, outlined above.
The same is true if you have received equivalent credits on your NI record for raising children or providing care.
If you don’t have 35 years, you may be able to top up your record by paying in voluntary NI contributions.
To get the full basic state pension you will need 30 years of NI contributions or credits.
To get any state pension at all, you will need at least 10 years on your NI record.
What age do I get the state pension?
In response to rising life expectancy, the age at which you become eligible to receive the state pension has been going up.
The age is now 66 for both men and women and is set to reach 68 by 2039.
How do I claim the state pension?
You won’t automatically get the state pension - you need to claim it once you’re eligible.
You should receive a letter no later than two months before you reach state pension age, explaining what to do.
You can find out more .
You can choose to defer getting the state pension - you don't have to take it as soon as you are eligible when you reach state pension age.
Leaving your state pension untouched can boost the amount you eventually get.
If you opt to defer your state pension, your entitlement increases by the equivalent of 1% for every five weeks you do so.
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As the state system can be tricky to navigate, a key part of any pension planning involves requesting a .
This will help you get your head around how much you could be eligible to receive, and from what age.
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