State pension: Expert discusses possible ‘significant increase’
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
State Pension payments will be important to millions of people right across the UK, many of whom have left the workforce for retirement. To be eligible for a state pension payment, one must have reached an eligible age, and put forward a certain number of National Insurance contributions throughout their lifetime. However, the Government states: "You may get less than the new full state pension if you were contracted out before April 6, 2016."
Currently, the state pension is split into two tiers, depending on how old a person is and when they retired.
To claim the basic state pension, a man must have been born before April 6, 1951, and a woman before April 6, 1952.
The new state pension is available to men born on or after April 6, 1951 and women born on or after April 6, 1953.
Britons who reached state pension age before April 6, 2016 will receive state pension under the old or 'basic' rules instead.
State pension: DWP to increase sum in April – full details of 2021/22 rates (Image: Getty)
Due to the split in state pensions, and indeed difference in National Insurance contributions, retired Britons receive different sums of money each year.
However, the full state pension sum will rise this year, the Government has pledged.
For the new state pension, the full rate currently stands at £175.20 per week, but this will increase in 2021/22 to £179.60.
For an older state pension arrangement, however, there are different components to bear in mind.
DON’T MISS Universal Credit UK: DWP may monitor your bank account & social media [INSIGHT] Rishi Sunak has been 'naive' on mortgage holidays – impact on deals [EXCLUSIVE] HMRC urges Britons to take action in slashing tax bill by up to £1,188 [UPDATE]
Those in receipt of a Category A or B 'basic' pension will see the rate rise from £134.25 to £137.60.
Category B (lower) basic pension recipients, who may be claiming under a spouse or civil partner's insurance – will see their sum rise from £80.45 to £82.45.
Britons in a Category C or D, otherwise known as a non-contributory arrangement, will also see an increase from £80.45 to £82.45.
The state pension increases each year due to a policy known as the Triple Lock Mechanism.
State Pension UK: What is State Pension? (Image: EXPRESS)
First established by the coalition Government in 2010, the policy guarantees a state pension increase by the largest of three factors each year, to ensure the state pension does not lose value in real terms.
These are: earnings, the consumer price index (CPI), or 2.5 percent.
As inflation was recorded as 0.5 percent in September, and earnings have remained low across 2020, this year a 2.5 percent increase will be implemented.
Although the Triple Lock Mechanism is designed to help protect the state pension sum, Britons do receive different amounts.
As a result, many may wish to check their entitlement, and what they will receive in retirement.
To this end, the Government has developed a state pension forecast tool to help people better understand their entitlement.
The tool can be used to find out how much state pension a person could get, when they can get it, and, if possible, how to increase this.
The online service is the quickest way to do so, however, people will not be able to use this if already getting their state pension, or if they have deferred a claim for the sum.
Those who reach state pension age within 30 days have other ways to apply laid out by the Government.
These individuals can apply by filling in the BR19 application form for a forecast and sending this by post, or calling the Future Pension Centre.
However, those who are already getting their state pension may be able to gain further clarity about their entitlement also.
Those who live in the UK should contact the Pension Service for information, and individuals living abroad will need to reach out to the International Pension Centre.
- Child benefit is rising in April - millions to see rates go up after 4 year freeze
- RBI Governor expects a V-shaped recovery for India in 2021-22
- India likely to stage sharp V-shaped recovery in 2021-22: RBI's Das
- India's GDP may grow at 7.4% in 2021-22, best among G20 nations: RBI Governor
- UK coronavirus cases rise to 129,044 but it’s the lowest jump for five days
- Coronavirus UK map – confirmed cases and deaths from COVID-19
- When will the UK coronavirus lockdown end?
- Coronavirus LIVE updates: UK deaths 'increasing more rapidly than any other country bar US'
- Coronavirus news from the Bay Area: April 17-18
- Coronavirus LIVE updates: Passengers flying into UK 'to quarantine for 14 days'
State pension UK: Britons will see their sum rise in April - full details of 2021/22 rates have 941 words, post on www.express.co.uk at February 18, 2021. This is cached page on ReZone. If you want remove this page, please contact us.