State Pension: Why you could get more than an 8.5% rise next April | Personal Finance | Finances

State pensioners they could be pleasantly surprised next April with their payments increasing by more than 8.5 percent.

The average earnings figures are a key metric that will determine how much payouts will rise next year under the triple-lock policy, which increases payouts by 8.5 percent.

Calculating the increases to the nearest penny, this would increase the full basic state pension from the current £156.20 a week to £169.48 a week, while the full new state pension would rise from £203.85 a week to £221.18.

But previous figures from the LCP showed both amounts would increase by a further 2p with an 8.5 per cent increase, with the full basic state pension increasing to £169.50 a week, while the full new state pension will be paid £221.20 per week. asked former pensions minister Steve Clark, who is a partner in LCP, to explain how the firm came up with the figures.

He explained: “They are usually rounded up to 5p intervals. I assume that when earnings are used they are rounded up, otherwise the increase would not strictly keep pace with the legal requirement to increase in line with earnings.”

With this increase, the full basic state pension would rise to £8,814 a year, while the full new state pension would rise to £11,502.40.

Goal figures Interactive Investors suggest that by next April’s increase, a pensioner will need £14,143 a year for their basic pension.

This means that even an individual on the full new state pension will need to find an extra £2,600 to survive. A person on the full basic state pension would need an extra £5,300.

Alice Guy, head of pensions and savings at Interactive Investor, said for what government pensioners should do if they face a shortage of funds.

She said: “If you’re short of money in retirement, it’s important to make sure you claim everything you’re entitled to.

“An estimated 800,000 households are not entitled to Pension Credit, which works to increase your income to £201.05 if you’re single and £306.85 if you’re with a partner.

“It will also open the door to a range of other benefits such as housing benefit and free prescriptions. If you are having financial difficulties, it is important that you reach out to someone for help.

“Charities like Stepchange specialize in helping people who are in debt or on a tight budget and have trained advisers who could help you increase your income.”

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