Everyone who gets the state pension could be set for a handy £937 boost from April, according to the latest Triple Lock calculations.
Although the final numbers are set to be crystallised in August, right now a wage growth figure of nearly 6 percent is set to hand another 5.9 percent boost to pensioners on both the basic and new forms of the state pension from the next financial year, April 2025.
Every year thanks to a system called the Triple Lock, the amount paid out each week via the state pension is increased by one of three metrics: wage growth, inflation or 2.5 percent, whichever of these three is the highest.
The Consumer Price Index (CPI) dropped to 2 percent in May, which is a reduction from April’s 2.3 percent and the lowest level inflation has been seen at since July 2021.
It could mean significant implications for millions of pensioners because the CPI is a crucial aspect of the Triple Lock, which determines the annual increase for state pensions.
Both the Labour Party and the Conservatives have pledged to keep the Triple Lock in place if they win the election on Thursday.
Both the Basic State Pension and the New State Pension will rise by at least 2.5 percent, or whichever is the highest out of annual wage growth from May to July or the CPI inflation rate year on year to September.
Right now, earnings growth looks set to be highest, at 5.9 percent, but it’s not until August’s announcement that the final Triple Lock figure will be decided.
Currently, figures of 5.9 percent growth would see the state pension jump from £221.20 a week to £234.45 or £937.80 per month.
Across a full year, the state pension would be £12,191.40 per year, up from £11,502.40. It would also mean the amount stays under the personal allowance tax threshold (just) of £12,570 assuming you have no other income – an increase of £689 per year.
But you need at least 10 years of National Insurance contribution records in order to claim any state pension, and you need about 35 years of records to claim the full state pension.
Those who don’t have a full record have just a few months to get a claim in – as outlined by Martin Lewis – and buy back any missing years to maximise your state pension.