How much will state pensions rise in 2022 after the triple lock is abolished, and what does it mean?

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How much will state pensions rise in 2022 after the triple lock is abolished, and what does it mean?

Pensioners will receive a £5.55 weekly increase next year, but experts say the increase will not protect them from rising prices.

The full state pension will be increased for retirees next year, but financial experts warn that inflation will easily outstrip the increase.

The triple lock has traditionally been used to calculate pensions, but it has been suspended for a year, meaning that older people will miss out on a larger increase.

Here’s everything you need to know about the state pension increase in 2022 and what it means for retirees.

Following a slight drop in inflation, pensioners can expect a £5.55 weekly increase next year.

The Consumer Prices Index (CPI), which will be used to calculate the increase, dropped to 3.1% in September from 3.2 percent in August, according to the Office for National Statistics.

“Today’s 3.1 percent inflation (CPI) figure will predict the value of the state pension rising from April 2022,” Alistair McQueen, head of savings and retirement at Aviva, said.

“If confirmed by the Government, this will result in a £5.55 increase in the weekly value of the full new state pension from £179.60 to £185.15 in April 2022.”

The triple lock ensures that the state pension increases in line with inflation, earnings, or 2.5 percent, whichever comes first.

However, the double lock’s replacement has severed the link between pensions and wage growth for a year.

The triple lock would have given pensioners an increase of around 8% next year if it had remained in place, equating to around £14 extra per week for some.

In September, the government announced that it would put the triple lock on hold for a year in order to avoid paying billions of pounds in compensation for breaking a manifesto promise.

Thérèse Coffey, the Secretary of State for Work and Pensions, said the double lock would be used temporarily to account for how the pandemic has distorted wage growth.

Because many people were previously furloughed, the Covid crisis has resulted in a spike in these figures.

UK news summary from Infosurhoy

How much will state pensions rise in 2022 after the triple lock is abolished, and what does it mean?

State pension 2022 increase: How much pensions will rise after the triple lock was scrapped and what it means

Read More - Featured ImageDepartment for Work and Pensions in London, England, United Kingdom. The Department for Work and Pensions, DWP, is responsible for welfare, pensions and child maintenance policy. As the UKs biggest public service department it administers the State Pension and a range of working age, disability and ill health benefits to over 22 million claimants. (photo by Mike Kemp/In Pictures via Getty Images Images)Read More - Featured Image

State pension 2022 increase: How much pensions will rise after the triple lock was scrapped and what it means

Read More - Featured ImageDepartment for Work and Pensions in London, England, United Kingdom. The Department for Work and Pensions, DWP, is responsible for welfare, pensions and child maintenance policy. As the UKs biggest public service department it administers the State Pension and a range of working age, disability and ill health benefits to over 22 million claimants. (photo by Mike Kemp/In Pictures via Getty Images Images)Read More - Featured Image

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