Potential four percent uplift to state pension from April 2020
07 October 2019
The full state pension is expected to receive a boost from £168.60 as it currently stands to £175.35 per week, with the basic state pension rising from £129.20 per week to £134.35 from April 2020 onwards. This reflects a four percent increase to the state pension prompted by figures relating to earning growth published by the Office for National Statistics.
The earnings growth figure is substantially higher than price inflation or the base figure 2.5%, which all form part of the ‘triple lock’ calculation system. Essentially, this calculation means that the state pension is uplifted by whichever is the highest of the three. This system was introduced back in 2010 and has ensured that the weekly state pension has increased significantly since then.
Speaking to Pensions Age, Steven Cameron, director of Aegon pensions state “based on the latest earnings growth figures, it looks like state pensions can look forward to an inflation busting four percent increase”. He also warned that, although this is positive news for pensioners, the hike would be of considerable cost as pensions are currently taken from national insurance contributions of those currently classed as employees.
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