UK. State pension could rise by 4% next year – giving elderly £351 extra a year
If you reached state pension age before April 6 in 2016, you’ll be receiving the old state pension, which means your payments would rise from £129.20 to £134.35 per week – or an extra £267.28 per year, insurer Aegon says.
The state pension is currently protected by the so-called triple lock, which ensures it rises by at least the same rate as the cost of living.
It means that the state pension increases either by 2.5 per cent a year, the rate of inflation or average salary growth, whichever is highest.
Inflation stood at 1.7 per cent in August, although the September figure used won’t be announced until mid-October.
While the earnings growth figure used is for the year to July, and it came in at 4 per cent.
So unless there are any last-minute changes, pensioners will receive a 4 per cent increase from April, Aegon said.
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