The ONS has confirmed that the state pension will rise by 4.8% in April
Millions of retired Brits are set to witness a substantial increase in their pension payments come next April thanks to the triple lock guarantee. Data published by the Office for National Statistics (ONS) last month revealed that the state pension will climb by 4.8% in the spring, matching total earnings growth for the quarter ending in July.
The pension rises each April according to whichever proves highest among total earnings growth between May and July in the preceding year, Consumer Prices Index (CPI) inflation in September of the previous year, or 2.5%. With September’s CPI confirmed at 3.8%, the rise will be calculated on earnings growth, delivering retirees a considerable financial boost.
This means individuals receiving the full new state pension will get £241.30 weekly, whilst those on the maximum basic state pension will receive £184.90 weekly from April, reports the Express.
However, not every pensioner qualifies for this retirement income, as eligibility depends on national insurance records. Britons need approximately 35 years of national insurance contributions (NIC) to qualify for the complete new state pension, though this may vary for workers who were “contracted out”.
Industry experts have cautioned that this increase will push some retirees dangerously near the threshold where they become liable for income tax. The new full state pension sum of £12,547 sits merely £23 below the Personal Allowance income threshold, which, if surpassed, would compel pensioners to pay tax during retirement.
The Labour government has committed to maintaining the Personal Allowance at a steady £12,570 until April 2028.
Full new state pension:
- Weekly: £241.30 (from £230.25)
- Monthly: £965.20
- Yearly: £12,547
Full basic state pension
- Weekly: £184.90 (from £176.45)
- Monthly: £739.60
- Yearly: £9,614
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