Government to pay pensioners an extra 3.9%
Retirees will get a welcome income boost from next week when the Government increases the state pension by 3.9%.
The amount by which the new state pension rises is determined by the so-called ‘triple lock.’
This means state pensions must rise at the start of every tax year at the rate of earnings growth, price inflation or 2.5%, whichever was highest during September of the year before.
From the start of the 2020/21 tax year on 6 April the Government-backed pension will increase by earnings inflation, which was 3.9% last September.
How much extra will I get?
Those who reached state pension age after 6 April 2016 are eligible for the new state pension, currently a maximum of £168.60. This will rise to £175.20.
Retirees who reached state pension age before 6 April 2016 are entitled to the basic state pension. This is £129.20 now and will be £134.25 when the increase comes in.
Steven Cameron, of Aegon, says: “The Government’s commitment to maintaining the state pension triple lock will offer some good news in a difficult climate for state pensioners as they will receive a bumper increase in state pension payments from next week.”
When am I eligible for the state pension?
This depends upon sex and date of birth. For women born before 6 April 1950, their state pension age remains 60. For those younger than this, their state pension age will be greater than 60. If you were born on or after 6 April 1950 but before 6 December 1953, the state pension age will be somewhere between 60 and 65, depending on date of birth.
For those born on or after 6 December 1953 but before 6 April 1978, their state pension age will be somewhere between 65 and 68 depending on date of birth. The state pension age is 68 for those born on or after 6 April 1978.
Pensioners will need to have paid 30 years of National Insurance (NI) contributions to be eligible for the full allowance if they reached state pension age before April 2016. Those reaching pension age after this point need to have paid NI for 35 years.
I thought it was 35 years,…
I thought it was 35 years, contributions to get the full state pension ?
I did not get my pension increase this week - April 2020
Please can you help me to understand why I have not had a pension increase this week? My weekly state pension paid yesterday (9/4) was the same as previous weeks.
why was o.a.p not in cluled…
why was o.a.p not in cluled in the cash give away like every one else
30 years to qualify is not relevant to all people - current requirement is 35 years.
Basic State Pension is currently £134.25.
I think I have adjusted now!
I hope the Triple-Lock remains in force as it covers for other domestic increases, otherwise those on Basic State Pension will be in grave difficulties.
Can never reconcile the increase
I cant understand why the increase on old state paension was less than 3.9% , i always notice is not the full amount unless its only on the basic amount and the additional i get for Graduated pension stays the same but even then its more than the £5.05 quoted . 3.9% on top of the amount i have been receiving for the last 12 months would have given me an additional £5.55 but mine only increased by 5.28 , strange as i cant reconcile where they get their figures from
Army Pension Increase.
Why was the Army Pension Increase 1.7% and
the State Pension 3.9% for April 2020.....?
Having worked in UK since 1977 without a break I have accumulated 43 years of NI contributions so how come my pension which I get mid may 2020 is only £163 per week? I believe it will aslo be taxed.