State Pension payments are guaranteed to increase every year under a policy which is known as the triple lock mechanism. First brought in by the then-coalition Government in 2010, triple lock is intended to protect pensioners in real terms. Annually, the state pension always rises by the highest of the following factors: earnings growth, 2.5 percent or inflation.
“The promise comes at a price, however, with the Office for Budget Responsibility (OBR) estimating maintaining the Triple Lock would cost £6billion more than a straight CPI inflation lock and £.2billion more than a lock to average earnings.
“Abandoning or watering down this manifesto pledge would undoubtedly be unpopular, particularly among older voters.
“But, given the circumstances, it could probably be justified.”
At present, the full new state pension sum stands at a total of £175.20 per week for those eligible to receive the sum.
After Brexit, the increase has also been secured for pensioners who have retired overseas to certain countries including the EU and the European Economic Area (EEA).
However, the so-called ‘frozen’ pension conundrum still exists for expats who have chosen to retire elsewhere in the world.
Reciprocal social security agreements are still in the process of discussion with the UK and foreign governments.
For those who are looking for further clarity as to their state pension sum, this can be gained through a forecast.
The online service can be used to find out how much state pension a person can get, when they can get it, and how to increase it if they can.
However, Britons should bear in mind the service cannot be used if they are already in receipt of their state pension, or if they have delayed claiming it.
Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to [email protected].