Exciting news for pensioners! The state pension is set to jump by over £500 annually starting next April. Thanks to the triple lock guarantee, this rise ensures pensions reflect higher wage growth, inflation, or at least 2.5%, whichever is highest. Latest data shows wages grew by 4.7%, likely setting the pace for next year’s pension increase.
For those on the new full state pension, weekly payments will grow from £230.25 to £241.05. Meanwhile, those receiving the basic state pension will see their weekly amount rise from £176.45 to £184.75. While this boost is welcomed, it’s anticipated that it will bring many pensioners closer to the income tax threshold. With an annual pension nearing £12,535, some may soon pay basic rate tax.
This increase highlights potential challenges for the government, which faces a growing pension bill. The triple lock is safeguarded for now, but its long-term future remains uncertain as debates continue around the state pension age. Stay tuned for more updates and what this means for you!