Last October I wrote an article on the value of Triple Lock, which guarantees that the State Pension will rise by the higher of Consumer Price Inflation (CPI), Average Earnings Growth or 2.5%. It is at this time of the year that we know what the following April\u2019s State Pension increase will be, as the CPI figure is the annual figure to September (the earnings growth figure is the 3 months to July).<\/p>\n\n\n\n
2020\nhas clearly been a very different year when compared to 2019 \u2013 indeed compared\nto most years – yet they both represent good news for recipients of the State\nPension. Let\u2019s look at the figures:<\/p>\n\n\n\n
State Pension increase 2020<\/span><\/p>\n\n\n\n The\nrelevant figures were:<\/p>\n\n\n\n As\na result, the State Pension increased by 3.9%, more than double the rate of\ninflation.<\/p>\n\n\n\n State Pension increase 2021<\/span><\/p>\n\n\n\n The\nrelevant figures are:<\/p>\n\n\n\n It\nhas been a year of low inflation and earnings have fallen due to the impact of\nCovid-19 measures. Because of Triple Lock, however, the minimum increase to the\nState Pension is 2.5%, therefore the State Pension will increase by 5 times the\nrate of inflation.<\/p>\n\n\n\n The Government has not indicated that the Triple Lock is to be reviewed, but it is clearly a system which is expensive over the long term and, some will argue, unnecessarily so. At a time when the Government has raised very significant levels of debt whilst tax revenues will be significantly reduced, we wonder how long Triple lock will remain in force. In the meantime, it is good news for recipients of the State Pension!<\/p>\n\n\n\n For\nany pension queries, or any other financial planning related queries, please\ncontact us using the contact details below.<\/p>\n","protected":false},"excerpt":{"rendered":" Last October I wrote an article on the value of Triple Lock, which guarantees that the State Pension will rise by the higher of Consumer Price Inflation (CPI), Average Earnings Growth or 2.5%. It is at this time of the year that we know what the following April\u2019s State Pension increase will be, as the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n