Does the State Pension increase every year?

Langtang

As above. We are looking to retire in 2 years time, aged 60. SPA isn’t until 67, so I was wondering if there was an annual increase in the pension? Trying to figure out what our pension will be in 10 years time rather than using today’s figure of c£9100. Has the pension increased in previous years, if at least. Sorry if the answer is out there in google-land. 

MallyGirl

yes - it does increase to cope with inflation. Someone else will be along to tell you how they calc the increase.

JGB1955

Currently the basic State Pension increases every year by whichever is the highest of the following:

• earnings - the average percentage growth in wages (in Great Britain) as reported in the 3 months before July.
• prices - the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI) as reported in September.
• 2.5%

The CPI in September 2020 (the month that the 2021/22 figures are based on) was 0.7%, earnings growth was -1%,  so 2.5% wins the day.

Rodders53

Or, from the horse's mouth https://www.gov.uk/state-pension

sevenhills

JGB1955 said:

Currently the basic State Pension increases every year by whichever is the highest of the following:

The government has introduced a Bill into Parliament which ensures that the state pension will increase in tax year 2020-21, and that the ‘triple lock’ will be maintained.

Recently, speculation has been rife that Chancellor, Rishi Sunak, was intending to get rid of the ‘triple lock’ due to worries that it would soon become unaffordable, and unrealistic to offer. The introduction of the Bill today confirms that there are no such plans at this moment in time.

xylophone

Have you both obtained State Pension Forecasts?

https://www.gov.uk/check-state-pension

trickydicky14

Out of interest, what time of year does the pension increase, or should I say, when do you see that increase in your bank account.?

MaxiRobriguez

JGB1955 said:

Currently the basic State Pension increases every year by whichever is the highest of the following:

• earnings - the average percentage growth in wages (in Great Britain) as reported in the 3 months before July.
• prices - the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI) as reported in September.
• 2.5%

The CPI in September 2020 (the month that the 2021/22 figures are based on) was 0.7%, earnings growth was -1%,  so 2.5% wins the day.

This just shows why the triple lock is unfair and should be ditched ASAP. 

NedS

trickydicky14 said:

Out of interest, what time of year does the pension increase, or should I say, when do you see that increase in your bank account.?

April, start of the new tax year.

squirrelpie

sevenhills said:

JGB1955 said:

Currently the basic State Pension increases every year by whichever is the highest of the following:

The government has introduced a Bill into Parliament which ensures that the state pension will increase in tax year 2020-21, and that the ‘triple lock’ will be maintained.

Recently, speculation has been rife that Chancellor, Rishi Sunak, was intending to get rid of the ‘triple lock’ due to worries that it would soon become unaffordable, and unrealistic to offer. The introduction of the Bill today confirms that there are no such plans at this moment in time.

I'm a bit confused by the timing. You say "introduction of the Bill today" but the official link you provide apparently says it was all done and dusted last November and the act itself says "This Act comes into force on the day on which it is passed."

So I'm not clear what the relevance of today is?

Langtang

xylophone said:

Have you both obtained State Pension Forecasts?

Thank you to all who replied, your responses are very much appreciated.

Yes, we have. Reading beyond the headline figure, we're forecast to get £175.xx per week, each.
What I was also wondering was, is that the figure I will get at spa, or will I get that plus any increments over the intervening years? My initial response would be that I don't get the increments, but it was a question that cropped up in conversation.