The state pension is rising by 2.5% in April 2021, resulting in retirees getting up to an extra £228.80 a year.
State pensions are increased each year either in line with earnings, the consumer price index (CPI) or 2.5%, whichever is highest – known as the triple lock system. As inflation was 0.5% in September and earnings have remained low throughout 2020, the triple lock system means that retirees will receive a 2.5% increase to their state pension in April.
As a result of the 2.5% increase, from April those on the new full state pension will get an extra £4.40 a week, increasing the weekly pension to £179.60, which results in an extra £228.80 over the 12-month period. Meanwhile, those on the old full state pension, will get an extra £3.40 a week, increasing the weekly pension to £137.65, which results in an extra £176.80 over the year.
Although the 2.5% increase will be welcomed by pensioners, some finance experts are questioning how long the Government will continue with the triple lock system particularly as the country continues to feel the economic fallout from the Coronavirus pandemic.
