economy
Update on how much triple lock increase could be next year
State pensioners may be planning ahead their finances wondering how much the triple lock increase next year. A finance expert has shared his predictions on how much the pay rise could be. He also spoke about whether there could be an inflation shock that makes for a larger increase than anticipated.
TL;DR
- A finance expert predicts the state pension triple lock increase will be between 4% and 5%, with 4.1% being a likely estimate.
- A 4.1% increase would raise the full new state pension from £241.30 to £251.20 per week.
- Under current rules, this rise would mean pensioners on the full state pension alone would exceed the £12,570 personal allowance, leading to an estimated £98.48 tax bill.
- The government plans to introduce a policy to prevent pensioners from paying this tax, but the specifics are not yet public.
- Inflation is currently lower than earnings growth, but potential increases due to poor harvests and global events could impact the final figure, though a significant inflation shock is considered unlikely.