The state pension is poised to rise to £221.20 weekly starting in April, following the ONS’s announcement that average earnings, inclusive of bonuses, increased by 8.5% over the three months leading up to July.
This hike would set the yearly disbursement at £11,502.40. This is in line with last year’s inflation-aligned increase of 10.1%, which amounted to a weekly rate of £203.85 or an annual total of £10,600, based on Quilter wealth management’s analysis.
Jon Greer, Quilter’s head of retirement policy, remarked:
The ‘triple lock’ remains a contentious topic, highlighting generational disparities.
Some argue for its removal, reasoning that it significantly elevates the incomes of pensioners at a hefty governmental cost, especially when resources are thinly spread across other essential sectors.
Conversely, some advocate that younger generations should appreciate the augmented state pension, as they too will eventually reap its rewards.
Both perspectives hold merit. While it’s true that today’s youth will benefit in the future, that advantage is distant.
The pressing issue is ensuring that adjustments to the state pension are reflective of broader economic trends and experiences.
