Veteran Vic Williams calls for end frozen state pensions in 2013
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The state pension often makes up part of a person’s retirement income. It can be claimed once a person has reached state pension age.
Both the basic and the new state pension payments increase each year.
This is currently under the triple lock mechanism.
Under this system, the payment increase each year by whichever is the highest out of:
- Earnings – the average percentage growth in wages (in Great Britain)
- Prices – the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
- 2.5 percent.
Currently, the full basic state pension is £134.25 per week.
The full new state pension, meanwhile, is £175.20 per week.
That’s not to say everyone will get these full amounts.
They may not qualify for the full amount, or there are instances where some could get a higher amount.
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This year, the state pension will rise by the latter part of the triple lock – 2.5 percent.
Meanwhile, benefits such as Universal Credit will rise by 0.5 percent.
The full new state pension will rise to £179.60 per week for the 2021/22 tax year.
The full basic state pension is to increase to £137.60 per week.
Not everyone will see their state pension increase in April 2021 though.
Around 520,000 British pensioners don’t get the rise due to where they live in the world, according to the End Frozen Pensions campaign.
The UK state pension can be claimed from overseas but it only rises each year for those living in certain countries.
As it doesn’t increase, inflation means the payment falls in real value year-on-year.
The state pension will only increase each year if the person lives in:
- The European Economic Area (EEA)
- Countries that have a social security agreement with the UK – but a person cannot get increases in Canada or New Zealand.
“You will not get yearly increases if you live outside these countries,” states the Government.
“Your pension will go up to the current rate if you return to live in the UK.”
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