📈 Exciting news for pensioners! The UK state pension could rise by up to £538.79 a year come April 2026, thanks to the triple lock system. The triple lock ensures that pensions increase annually by the highest of either inflation, wage growth, or 2.5%. With inflation and wages currently rising, expect a boost of between 4.0% and 4.5%. 💪
For those on the newer state pension, this would mean up to an extra £538.79 annually. If you’re receiving the basic state pension, expect a rise between £367 and £413 each year. However, be aware that a higher pension might edge closer to the current UK Personal Allowance tax threshold of £12,570, potentially leading to tax on additional personal pension income if thresholds remain unchanged. 💷
The exact rise will depend on the Treasury’s review in March 2025, but it’s good to be prepared for this potential change. Remember, the standard state pension age is 66, but this will increase depending on your birth date. 👍
Stay informed and budget smartly as we await more updates on this welcome news for pensioners! 🌟