New state pension and triple lock

bigfreddiel

My state pension in July will be about £153/wk, just below the £155/wk full new state pension.

My £153/wk is based on the old calculation and includes som additional pension I earned while contracted in.

My question is will the triple lock annual increase apply to the full £153/wk?

Cheers fj

ischofie1

I don't believe it will although I stand to be corrected if someone knows better.
I believe the triple lock will apply to the lower £119 ish level and the remainder will go up by CPI.

Regards.

molerat

The triple lock will apply to all amounts below the maximum (£155.65) figure. Only the protected amounts over the full pension figure are subject to the CPI only uprating.

minty777

bigfreddiel wrote: »

My state pension in July will be about £153/wk, just below the £155/wk full new state pension.

My £153/wk is based on the old calculation and includes som additional pension I earned while contracted in.

My question is will the triple lock annual increase apply to the full £153/wk?

Cheers fj

I think in your case you could put off claiming for 18 week and then you will get the full £155.65 a week.

bigfreddiel

molerat wrote: »

The triple lock will apply to all amounts below the maximum (£155.65) figure. Only the protected amounts over the full pension figure are subject to the CPI only uprating.

That's how I understand it. Thanks this from the site:

Will the new maximum flat-rate £155.65 payout rise each year in line with inflation?
Yes. Like the old state pension, the headline rate will rise with the so-called triple lock.

This goes up every April by the biggest of the following: -inflation in the previous September (using the Consumer Prices Index); - the increase in average earnings; - or 2.5%.

For those who will receive more than the new £155.65 rate, the extra 'protected' income is to rise only by inflation..

So as long as I'm below the nSP amount it all goes up by the triple lock.

Cheers fj

xylophone

As things stand at the moment, your £153 will be index linked under the triple lock ( the greatest of September CPI/average earnings/2.5%, payable the following April).

If your pension had been say £160/week, the amount over the value of the new state pension would have been your "protected payment" and would be index linked by September CPI.

PeacefulWaters

I wouldn't count on triple lock lasting forever.

It's a financial commitment no government can afford long term.

greenglide

I think in your case you could put off claiming for 18 week and then you will get the full £155.65 a week.

No you won't.

Deferring will increase the amount paid up to and beyond £155.65 but the nSP amount will stay at £153.

The increments will be paid as a component called "Extra State Pension" and this is uprated by the CPI in the same way that the Protected Payments is in the same way that increments are under the old system.

This is the same for the old system and the new one, increments do not increase the basic pension.

bigfreddiel

PeacefulWaters wrote: »

I wouldn't count on triple lock lasting forever.

It's a financial commitment no government can afford long term.

Probably correct, but not the answer to my question, in Jusr A Minute style - deviation!

bigfreddiel

minty777 wrote: »

I think in your case you could put off claiming for 18 week and then you will get the full £155.65 a week.

So I for go 18 x £153 or £2,754 to gain about £2/week!

Cheers fj

greenglide

It's a financial commitment no government can afford long term.

A period of inflation of more than 2.5% with wages not keeping up with inflation failing to keep up with inflation would make it fairly academic, at least for a while!