The State Pension is set to increase on 6^th April 2024 due to a mechanism known at the ‘Triple Lock’, as announced by Chancellor Jeremy Hunt during his Autumn Statement in November 2023.

The State Pension is a recurring benefit paid out every four weeks by the government. This payment is made available to individuals who have reached the qualifying age and have sufficiently contributed to National Insurance.

Qualifying for a full State Pension is based on your National Insurance Contributions (NICs); the number of years you’ve paid or been credited with these contributions and when you start claiming your State Pension determines the amount you receive. You can access the Government Website here to check your personal National Insurance record and forecast your State Pension.

The increase announced during the Autumn Statement translated to significant changes in the weekly pension amounts; for those receiving the full, new flat-rate State Pension, the weekly amount will be £221.20, up 8.5% from £203.85. Meanwhile, those on the full, old basic State Pension, the weekly figure will now be £169.50, up from £156.20.

The State Pension ‘Triple Lock’ concept may seem complex, but it’s quite straightforward. The ‘Triple Lock’ is a system that ensures the State Pension increases each April, with the increase based on the highest of three measures.

The ‘Triple Lock’ system measures inflation as per the Consumer Price Index of the previous September, the average wage increase across the UK, or a minimum of 2.5%. Whichever of these three measures is highest dictates the increase in the State Pension.

Understanding your pension options thoroughly is vital to planning a comfortable retirement. Having received the Best Pension Income Planning Specialist – Scotland award from the Retirement Planning Awards, why not get in touch with us for a free no-obligation chat if you require any further insight or assistance regarding your pensions or retirement planning? 

This article does not constitute tax or legal advice and should not be relied upon as such.

Tax treatment depends on the individual circumstances of each client, and may be subject to change in the future,