UK. State pension predicted to rise by 8%
Predictions suggest that the link with earnings growth could mean an 8% rise in the amount paid from April 2022.
That would cost the government £3bn more than previously expected, according to the Office for Budget Responsibility (OBR).
Read also UK. Chancellor Rishi Sunak hints at ruling out 8% pension rise
But UK state pensions remain less generous than much of Europe, and are vital for millions of people.
Read also UK. Nearly a third of Gen Xers have inadequate pension savings
At present:
The new flat-rate state pension (for those who reached state pension age after April 2016) is £179.60 a week
The old basic state pension (for those who reached state pension age before April 2016) is £137.60 a week
The rise in pensions each year is one of the most hotly-debated policy decisions for the government and the Treasury.
Read also The slow-burn crisis inside Ukraine’s pension system
It is governed by what is known as the triple lock – a Conservative manifesto promise until at least 2024.
This means the state pension increases in line with the rising cost of living seen in the Consumer Prices Index (CPI) measure of inflation, increasing average wages, or 2.5%, whichever of those three is highest.
Read more @BBC
303 views
