Guy Opperman quizzed on state pension underpayments
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The tax year for 2020/21 is ending, and as the 2021/22 tax year begins, various changes will come into effect. This month, pensioners who get the UK state pension may notice the amount they can get has risen.
To keep up with rising wages and increasing living costs, the payment is uprated each year.
The increase to the UK state pension is currently based on a triple lock mechanism.
This means it rises 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.
For 2020 to 2021, the full new state pension rate is £175.20 per week.
It will rise to £179.60 per week for 2021 to 2022.
The full basic state pension was £134.25 per week.
In April 2021, the basic state pension is increasing to £137.60.
It’s possible to check to see how much a person can get via the state pension online.
The “Check your State Pension forecast” tool can be accessed on the Government website.
The state pension forecast service enables a person to find out how much state pension they could get, as well as when they could get it.
If it’s possible to increase it, the user can also be told how to increase it.
When getting a forecast, it’s very important to note the state pension age is under review, and it may change in the future.
Furthermore, people who are already getting their state pension can’t use this service.
Those who have delayed or “deferred” claiming it can’t use the service either.
Applying online is the quickest way to get a forecast, the Government states, but there are other methods.
People who will reach their state pension age in more than 30 days can fill in the BR19 application form and send it by post.
They can otherwise call the Future Pension Centre, who will post the forecast to them.
Despite the increase this month, not every UK state pensioner will receive the boost.
Some people who have retired overseas will miss out on the uprating, due to where in the world they live.
It will only rise 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).
If they live outside the countries, they will not get yearly increases.
Should they return to live in the UK, the pension will go up to the current rate.
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