‘TRIPLE LOCK’ TO INCREASE BY 8.5% FROM 6 APRIL 2024

The State Pension is set to increase commencing on 6 April 2024 due to a mechanism known as the ‘Triple Lock’. Chancellor Jeremy Hunt has announced an increase of 8.5%, which pensioners will welcome.

The State Pension is a recurring benefit paid out every four weeks by the government. This payment is made available to individuals who have reached the qualifying age and have sufficiently contributed to National Insurance.

Should I combine my pensions into one pot?

CHANGES IN THE WEEKLY PENSION AMOUNTS

Qualifying for a full State Pension is based on your National Insurance Contributions (NICs). The number of years you’ve paid or been credited with these contributions and when you start claiming your State Pension determines the amount you receive. You can access government websites to check your personal NI record and forecast your State Pension.

This increase announced during the Autumn Statement translates to significant changes in the weekly pension amounts. For those receiving the full, new flat-rate State Pension, the weekly amount will be £221.20. Meanwhile, for those on the full, old basic State Pension, the weekly figure will be £169.50.

“RECURRING BENEFIT PAID OUT EVERY FOUR WEEKS BY THE GOVERNMENT. THIS PAYMENT IS MADE AVAILABLE TO INDIVIDUALS WHO HAVE REACHED THE QUALIFYING AGE AND HAVE SUFFICIENTLY CONTRIBUTED TO NATIONAL INSURANCE.”

THE HIGHEST OF THE THREE MEASURES

The State Pension ‘Triple Lock’ concept might seem complex, but it’s quite straightforward. It’s a system that ensures the State Pension increases each April, with the increase based on the highest of three measures.

The ‘Triple Lock’ system measures inflation as per the Consumer Price Index of the previous September, the average wage increase across the UK or a minimum of 2.5%. Whichever of these three measures is highest dictates the increase in the State Pension.

Please share if you know someone who might find this article interesting or useful

Contact Us Form

Please complete this form if you wish to send us your questions or if you would like to request a call back.

We look forward to speaking with you.

1 Step 1
reCaptcha v3
keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right

Recent GWM articles that may be of interest

Postponing Retirement

An increasingly growing trend in Britain Recent studies indicate that approximately half (49%) of non-retired [...]

Proactive retirement planning

A growing trend among mid-lifers prioritising their future financial stability A recent study reveals a [...]

The gift of giving

Distributing assets or cash without contributing to your estate’s overall value for Inheritance Tax purposes [...]

The ‘Bank of Family’

A £38 billion lifeline for modern parents In the challenging realm of parenting, an unexpected [...]

Smart Money May/June 2024

ENHANCING PENSION CONTRIBUTIONS FOR A BRIGHTER FUTURE Welcome to the May/June 2024 edition of Smart [...]

Postponing retirement

An increasingly growing trend in Britain Recent studies indicate that approximately half (49%) of non-retired [...]