December 1, 2016 | 5years | Retirement Planning News
The government has confirmed next year's state pension will increase by 2.5% under the ‘triple lock guarantee’.
The annual up-rating will take place in the first full week of the new tax year and applies to both the new flat rate state pension and the old basic state pension. Pensioners receiving the flat rate pension will see their weekly income rise from £155.65 to £159.55 per week. Those on the basic state pension will get £122.30, up from £119.30.
The triple lock guarantees that the state pension will increase by the higher of inflation, earnings growth or 2.5%.
The guarantee is only a government promise. Legislation requires only that the Basic State Pension increases in line with earnings.
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