Triple Lock on the New State Pension

towag

The triple lock on the New State Pension is supposed to rise every year in line with wages, prices or 2.5%, whichever is highest. Does anyone here know if that is 2.5% compound or just 2.5% flat of £8093 pa (or £156.65 a week) added each year....?

greenglide

The increase awarded is always based on the rate in Forse at the time. The same percentage will be awarded to old rules SP and nSP.

Getting 2.5% or any other amount of a rate from years old ago is clearly madness.

bigfreddiel

towag wrote: »

The triple lock on the New State Pension is supposed to rise every year in line with wages, prices or 2.5%, whichever is highest. Does anyone here know if that is 2.5% compound or just 2.5% flat of £8093 pa (or £156.65 a week) added each year....?

Of course it's compound!

Trying to do this any other way would be a nightmare to keep track of

fj

bigfreddiel

greenglide wrote: »

The increase awarded is always based on the rate in Forse at the time. The same percentage will be awarded to old rules SP and nSP.

Getting 2.5% or any other amount of a rate from years old ago is clearly madness.

Well it may all end when the current parliament come up for re-election in 2020, so we have at least three more years of at least 2.5% compound interest!

fj

towag

bigfreddiel wrote: »

Of course it's compound!

Trying to do this any other way would be a nightmare to keep track of

fj

Your source ? I can't find anything on HMRC, Gov UK or otherwise... Why would it be a nightmare to keep track of?

bigfreddiel

towag wrote: »

Your source ? I can't find anything on HMRC, Gov UK or otherwise... Why would it be a nightmare to keep track of?

Well judging by all the it problems the gov has on other projects I can't see this working fj

greenglide

The Chancellor announces that the basic rate of pension goes up by n.nn% from £nnn.nn to £nnn.nn .

Do you really think he means a rate from years ago?

xylophone

The increase awarded is always based on the rate in Forse at the time.

Here? https://en.wikipedia.org/wiki/Forse_Castle:):)

towag

bigfreddiel wrote: »

Well judging by all the it problems the gov has on other projects I can't see this working fj

Like everything else when it comes to anything that requires being upfront coupled with common sense.....

towag

greenglide wrote: »

The Chancellor announces that the basic rate of pension goes up by n.nn% from £nnn.nn to £nnn.nn .

Do you really think he means a rate from years ago?

I wouldn't put anything past a politician....

bigfreddiel

towag wrote: »

Like everything else when it comes to anything that requires being upfront coupled with common sense.....

I quite agree, the DWP hasn't a clue, couldn't run a p up in a brewery, but there you go. The older you get you realise how gullible and believing youngsters are.

fj