State pension payments may hit over £200 per week next year – but will you get full sum? | Personal Finance | Finance
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State pension payments were temporarily affected this year due to the decision to freeze the triple lock mechanism. The rule usually sees the state pension rise each year in line with whichever is the highest: inflation, average earnings, or 2.5 percent.
The mechanism was dropped to a double lock this year, as earnings data was warped due to COVID-19.
While the state pension only increased by 3.1 percent this year, a bumper increase is expected next year.
This is because the triple lock is set to return, meaning a potential rise of 10 percent due to swelling inflation.
It is likely the inflation figure recorded in September 2022 will be used to calculate pension increases for 2023.
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Certain individuals may receive less than the new full state pension if they were contracted out before April 6, 2016.
In addition, many pensioners are also receiving the older state pension which offers a different sum.
The basic state pension is currently £141.85 per week, so a 10 percent increase could raise this to £156.05 weekly.
To get the full basic state pension, Britons usually require 30 qualifying years of contributions.
Also missing out on the increase are the so-called “frozen state pensioners”, individuals who decided to retire overseas in certain countries.
The state pension will only increase each year if people live in:
- The European Economic Area (EEA)
- Gibraltar
- Switzerland
- Countries that have a social security agreement with the UK – but not Canada or New Zealand.
Those who live outside these countries will not get yearly increases. However, if they return to live in the UK, their pension will go up to the current rate.
On this matter, a DWP spokesperson told Express.co.uk: “We understand that people move abroad for many reasons and we provide clear information about how this can impact on their finances.
“The Government’s policy on the uprating of the UK state pension for recipients living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”
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