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After the National Bureau of Statistics (ONS) publishes inflation data for the 12 months ending in September 2021, the full national pension for British pensioners will increase by 3.1% next year. So, how much will pensioners get next year? Let us find out.
What is the current state pension?
this British National Pension It is the regular payment that most people get from the government when they reach a certain age.
People who reach the national pension age on or after April 6, 2016 will receive the new national pension. The full amount of the pension is currently £179.60 per week.
those people arrive Before the national pension age 6 Received the national basic pension in April 2016. Currently, the full amount is £137.60 per week.
What is a triple lock system?
Country PStress is usually protected by a system called Triple lock. This ensures Pension increase Each year is made up of the higher of consumer price index (CPI) inflation, average income, or 2.5%.
However, as the surge in labor demand after the lock-in led to a sharp rise in income, the government decided to temporarily suspend the income portion of the triple lock-in.this This means that by 2022, the national pension will increase the average inflation rate or 2.5%, whichever is greater.
How much will the state pension increase in 2022?
The national pension will increase by 3.1% in 2022/23, which is consistent with the inflation data released by the National Bureau of Statistics.
This means that in April next year, the weekly payments for people receiving the full new state pension will increase by approximately £5.55 to £185.15. This means an increase of 289.64 pounds per year.
At the same time, the basic state pension will increase by £4.25 to £141.85 per week (an increase of £222.04 per year).
If the income element is not eliminated, pensioners’ pensions will increase by 8%. This means that the new national pension beneficiaries will increase by approximately 14.37 pounds to 194.50 pounds a week, and the basic state pension beneficiaries will increase by 11.09 pounds to 149 pounds a week.
Nevertheless, this year’s growth will be good news for many retirees, as it beats the 2.5% growth in April last year. This is also the third highest annual increase since the triple lock was introduced more than a decade ago.
Can you increase your national pension?
Not everyone can get a full state pension. Fortunately, there are some ways to increase the amount you earn.
If there is Blanks in your National Insurance record, You can make voluntary donations to close the gap.
Applying for national insurance credit can also help fill in the gaps in your national insurance record. Provide credits for various situations. For example, if you are a caregiver, handicapped, or receiving sick pay, you may be eligible.visit gov.uk website More detailed information about national insurance credits and how to apply.
Is the state pension enough for retirement?
Although the state pension can constitute an important part of your retirement income, research shows that it is not enough.
For example, according to a report Pension and Life Savings Association, A single person needs at least £10,900 a year to maintain a minimum standard of living after retirement.
However, the highest new state pension you can receive each year is £9,628.84 (2022/2023). Therefore, as you can see, there is a clear difference between retirement expenses and the expenses you receive from the state pension.
Please also remember that the highlighted £10,900 is the most basic standard of living in retirement. If you want to live more comfortably in your golden years, you undoubtedly need more money.
The ultimate implication of all this is not to rely solely on the state pension to fund your retirement life.
How do you ensure that you have enough money after retirement?
It all starts with a clear overview of the exact retirement lifestyle you want and calculating the amount you need.
The next step is to develop a strategy to achieve the goal. This may mean registering for a workplace or personal pension plan and maximizing your contributions.Or it might mean making your savings harder to work for you by investing them in the stock market Tax-efficient stocks and shares ISA.
No matter what decision you make, the key is to start preparing for your retirement as early as possible. The sooner you start, the bigger your nest will be when you finally put down your work tools.
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About the author
Sean is a personal finance writer who is passionate about helping others improve their financial knowledge and make better financial decisions. He covers everything from credit cards to savings to investment.
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