Pensions Set To Rise By 3.2 Per Cent In April | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 20/10/2021

In April pensions will rise by 3.2% as the Government suspends the triple-lock and increases state pensions in line with inflation instead.

Today’s announcement that the Consumer Price Index stood at 3.2% in September means that state pensions will also rise by this amount in April. This means that the basic state pension will rise by £4.25, from £137.60 per week to £141.85 per week, and the flat-rate state pension will increase by £5.55, from £179.60 per week to £185.15 per week.

The slight fall month-on-month in inflation between August and September means pensioners may find that if inflation rises in the coming months, the state pension increase next spring could mean they struggle to keep up with the rise in living costs. In addition to this, by suspending the triple-lock, which increases state pensions by inflation, earnings growth or 2.5%, whichever is highest, pensioners are missing out on an 8.3% increase they would have gained through earnings growth.

How to boost retirement income

Pensioners wanting to boost their retirement income have several options available. For homeowners, one of the most popular options is to unlock equity in their homes through downsizing or taking out a lifetime mortgage. Another popular way for pensioners to increase their incomes is by working part-time. Pensioners should also look at getting any benefits or discounts they are entitled to. Retirees with investments and savings may also want to review their portfolio to ensure that they are getting the best returns possible.

Those who have not yet retired may want to consider increasing their pension contributions while they are still working to stash as much money as possible into their personal pension pot. Workers can also consider starting to invest or increasing their investment portfolio to provide an income-boost for when they retire. For more information about investing visit our investment pages and look at our stocks and shares ISA chart.

Speak to a financial adviser

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