Today wage data grew by 8.5%. So, retirees could be in for a big boost in April.
State Pension income normally increases annually by whichever is the greatest of wage growth, inflation (CPI), or 2.5 percent. This is called the triple lock.
But the last time wage growth was this high, the government tinkered with the rules, suspending the triple lock for one year in 2022. So, there are no guarantees.
However, thankfully there are other ways to increase your State Pension income.
This article isn’t personal advice. If you’re not sure what’s right for your circumstances, ask for financial advice. Pension and tax rules can change, and benefits depend on your circumstances.
How much State Pension could I currently get and when?
The State Pension isn’t the same for everyone.
The amount you get depends on whether you qualify for the basic or new State Pension and how many ‘qualifying years’ of National Insurance (NI) contributions you have.
It will also depend on whether you contracted out of the additional State Pension.
The easiest way to check how much State Pension income you could get is by asking for a State Pension statement.
The government’s calculator can also help you find out the earliest age you can claim payments.
4 ways to boost your State Pension
1. Delaying your new State Pension payments once you reach the retirement age can boost how much you get.
If you do, the government will increase the amount you receive by around 5.8% for every year you delay taking an income.
MORE ON DELAYING THE STATE PENSION
2. You could also consider filling any gaps in your National Insurance record, if eligible.
You need a minimum of 35 years of National Insurance contributions to be eligible for the full new State Pension income. Choosing to make voluntary NI contributions could increase the amount of income you receive.
3. Married or in a civil partnership, born before 6 April 1951 (men) or 6 April 1953 (women) and aren’t getting a full State Pension?
If you are, you also might be eligible to increase your basic State Pension.
4. If you’re over State Pension age, single and earn less than £201.05 a week or a couple earning less than £306.85 a week, you could claim pension credit.
This is an income-related benefit, on which you won’t have to pay tax. To find out if you’re eligible, and how much you could receive, use the government’s calculator.
Can you live off the State Pension alone?
Lots of people believe the State Pension will be enough to live off alone. But for most people, it likely won’t be.
Right now, if you receive the full new State Pension, you’ll get around £10,600 a year. That means you’d fall short by around £12,500 if you wanted to reach the ‘moderate’ living standard suggested by industry experts.
Realistically, your retirement could last 20 or 30 years. You need to make sure you’ll have enough money to last as long as your retirement.
Our pension calculator can help you work out how much your current pensions are on track to pay and tips to consider if you’re falling short of your income goals.
Remember, you can’t usually access the money in your pension until you’re 55 (57 from 2028).