RETIREES is in line with a pay rise as the state pension rate will increase next year.
The payouts will increase 3.1% from April 2022 to keep up with the increasing cost of living.
Millions of Britons receive payouts when they reach pension scheme age – currently 66 for both men and women, but will increase in the future.
In 2028 it will increase to 67 and then 68 between 2044 and 2046, although it may be earlier.
For now, however, the benefit can be claimed when you turn 66 although you can delay to increase the amount you receive.
The amount of state pension you receive depends on your age, when you retire and your profile National Insurance Contribution (NIC).
There are two different systems in place as the way the state pension works changes from 6 April 2016.
Those who reach state pension age before this date, will receive their old state pension, known as the basic state pension.
According to this system you can also get extra and it is divided into four categories – A, B, C and D.
- A – a contribution that includes a basic pension and an additional income factor, dependent on the claimant’s NIC record.
- B – contribution payment, dependent on the NIC paid by a spouse or civil partner.
- C – a no-contribution payment, with very little (if any) required.
- D – a non-contribution payment to certain individuals over the age of 80, subject to certain conditions.
The pension paid after this date under the new system is known as the new state pension.
If you have accrued National Insurance contributions under both the old and new systems, you will receive a state pension based on a combination of the two.
Below are the current rates for both and the new amounts for next year.
What is the state pension in 2022?
New state pension every week
- Full Rate: £179.60 rising to £185.15 in 2022
You usually need 35 years NIC to get the maximum and at least 10 years to get anything.
If you don’t have enough money beyond your state pension you will receive less.
Old state pension every week
- Basic pension class A or B: £137.60 to £141.85 by 2022
- Basic pension class B (lower) – cover of spouse or civil partner: £82.45 increased to £85.00 in 2022
- Category C or D – no contribution: £82.45 increased to £85.00 in 2022.
To receive the full state basic pension, you usually need a 30-year NIC. If you have less than this, the rack you get will be lower.
What is a state pension triple lock?
The state pension increases each year so retirees can keep up with the cost of living, which often increases over time.
Usually the amount increases according to a formula known as the triple key
It was introduced by the coalition government in 2010 and shows which of the following increases in pension payments is the highest:
- earnings – average percentage growth in wages in the UK
- prices – the cost of living is rising in the UK, as measured by the Consumer Price Index (CPI)
But the triple lock was scrapped for a year due to the effects of the Covid pandemic.
Instead, the third key would be replaced by a double-lock promise – in just one year.
It means pension scheme will increase with the inflation rate, which is 3.1% and higher than 2.5%.
Wages have risen by around 8% since the lockdown ended, which will force the Prime Minister to find billions more pounds to fund pensions.
Many other benefits will also grow 3.1% next year – check out the full list.
Meanwhile retirees with low incomes can get more Help from Pension Credit – here’s how.
We pay for your stories!
Do you have a story for The Sun Money team?
https://www.thesun.co.uk/money/17038088/state-pension-payments-going-up-2022-how-much-more/ Will state pension payments go up in 2022 and how much more will I get?