Quick State Pension Question..

billymadbiker · 7 October 2017 at 9:15AM

Hi,
I have just checked my state pension summary on the gov.uk website.

I need to contribute for another 20yrs then in 2046 I should get £160p/w.
(based on my previous contributions I will only get £69p/w)
Just wanted to check, I presume this £160p/w will be linked to inflation?
So, in 2046 I will still be able to buy what I can buy with £160 now?

Thanks!

Alter_ego · 7 October 2017 at 9:17AM

In theory yes, in practice it doesn't work like that.

eg. When I first started work I could buy 40 Mars bars for £1 and they were about 40% larger, now I can probably buy 2 smaller ones.

JezR · 7 October 2017 at 10:29AM

By current law new state pension rises are linked to the increase in income.

By current government policy, they are linked also to the CPI if greater and a floor of 2.5%.

What may happen between now and 2046 is anyone's guess.

IanSt · 7 October 2017 at 10:29AM

billymadbiker wrote: »

Just wanted to check, I presume this £160p/w will be linked to inflation?
So, in 2046 I will still be able to buy what I can buy with £160 now?

There is currently a triple lock on the minimum amount that the pension is increased every year. Inflation is one of these, so currently yes it will always be increased by at least inflation.

A future government could change the method by which pensions are increased, but given that a lot of pensioners vote, it could be similar to turkeys voting for Christmas!

Quick State Pension Question..

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