Pension query

greenglide

We know that the Basic State Pension will increase each year, but does the State Second Pension (the £31.77 bit) also increase each year?

Yes it does!

However the basic pension (currently) increases by the triple lock - the highest of 2.5%, prices or wages.

AP (SERPS, S2P and GRAD) just goes up by the CPI.

xylophone

It seems he will get the full State Pension as he has 44 years worth of contributions, so come April if he was claiming pension he would get £115.95 I guess. In addition to that his statement says that he will get another £31.77 which is made of State Second Pension and something which I think they called Graduated pension. So that'll net him £147 and some pence per week if he starts to claim it in November of this year.

SERPS. S2P and GRB also increase - see link in my post above.

ukste

xylophone wrote: »

SERPS. S2P and GRB also increase - see link in my post above.

Thank you, that's very useful, as is the link to ageuk.

I've also found this site which has a benefits calculator on it. When I input the relevant data it returns with a result that shows that he would in fact be entitled to some Pension Savings Credit which might take him up to about £160 a week.

In order to get the calculator to work I changed his birth date to last November to make it appears as if he was already 65.

I played about it with a bit and I'm getting the impression that his optimum payout would be where he had not more than £10,000 in savings. He has a bit more than that but he's on about changing his car presently and so with the value of his current car he might spend 3 thousand or so in order to replace that. So that will probably benefit him when he does come to get his pension.

http://benefits-calculator.turn2us.org.uk/AboutYou