State pension will rise in April – but Triple Lock freeze will affect your sum | Personal Finance | Finance
State pension payments usually increase each year by the use of the triple lock mechanism. This means the sum increases by whichever is the highest of three components: 2.5 percent, inflation or average earnings. However, the mechanism has been frozen this year in an unprecedented move by the Government.
Due to warped earnings data as a result of COVID-19, the state pension sum was expected to soar by a substantial amount.
Predictions pegged an eight percent rise for pensioners in the coming year, one of the highest increases the state pension sum would have ever seen.
But this potential mammoth rise was seen as unsustainable, and unfair for younger, working individuals.
As a result, the Government has temporarily frozen the triple lock, instead implementing an alternative increase.
READ MORE: State pension alert: You could increase sum simply by doing nothing
This, however, is dependent on factors including National Insurance contributions and years worked.
Those who want to find out more about their state pension can make use of the forecast service.
The online tool on the Government’s website can be used to find out:
- How much state pension a person could get
- When they can get it
- How to increase it, if possible
However, it is important to note the service cannot be used by people already claiming their state pension, or those who have delayed a claim.
These individuals will need to contact the Pension Service for further details about their sum.
