State Pension Increase 2022

doesmyheadin

My 2022 state pension will increase by 3.8% I was expecting 3.1% Any answers from anyone?? I am 74 Years old

hugheskevi

Do you have a Guaranteed Minimum Pension (GMP) within a private pension from being contracted out prior to 1997 which the State is paying increases on through your State Additional Pension, resulting in an increase on your overall State Pension above 3.1%?

Marcon

hugheskevi said:

Do you have a Guaranteed Minimum Pension (GMP) within a private pension from being contracted out prior to 1997 which the State is paying increases on through your State Additional Pension, resulting in an increase on your overall State Pension above 3.1%?

This is likely to be the answer, given your age. If you aren't sure, then contact any pension scheme of which you were a member at any point between 1978 and 1997 and they will be able to confirm (or indeed may already have written to you about this).

xylophone

https://www.wypf.org.uk/pensioner/all-about-my-pension/whats-gmp-and-how-does-it-affect-me/#:~:text=From state pension age the,, the government pays this.)

May be of interest as an example.

Silvertabby

xylophone said:

https://www.wypf.org.uk/pensioner/all-about-my-pension/whats-gmp-and-how-does-it-affect-me/#:~:text=From state pension age the,, the government pays this.)

May be of interest as an example.

Applies in this case, as OP reached SPA before April 2016.

For the benefit of readers who reach SPA after April 2016....

Public sector pensions will continue to pay the CPI increase on all of the pension, including both pre and post 1988 GMP.

Private sector GMP increases will be subject to individual scheme rules/decisions.

xylophone

Public sector pensions will continue to pay the CPI increase on all of the pension, including both pre and post 1988 GMP.

Private sector GMP increases will be subject to individual scheme rules/decisions.

Some are more equal than others......? 

Silvertabby

xylophone said:

Public sector pensions will continue to pay the CPI increase on all of the pension, including both pre and post 1988 GMP.

Private sector GMP increases will be subject to individual scheme rules/decisions.

Some are more equal than others......? 

Exactly.  This has already been discussed on these boards - can't remember when/where, but possibly on an Armed Forces thread?  To be honest, I'm surprised that there has been so little kicking off by private pension scheme members.

DairyQueen

Silvertabby said:

xylophone said:

Public sector pensions will continue to pay the CPI increase on all of the pension, including both pre and post 1988 GMP.

Private sector GMP increases will be subject to individual scheme rules/decisions.

Some are more equal than others......? 

Exactly.  This has already been discussed on these boards - can't remember when/where, but possibly on an Armed Forces thread?  To be honest, I'm surprised that there has been so little kicking off by private pension scheme members.

Possibly a reflection of widespread ignorance about GMP. Government got away with welching on its obligations to private sector employees because most don't know that the government withdrew the index guarantee on a part of the SP.

Not exactly widely reported at the time (or since).

badmemory

And I will say it again.  The increase from 137.60 to 141.85 is not 3.1% it is 3.088% ripping us off by £1 a year.  I mean shafting us for a whole £1 because they think no-one will notice.

Silvertabby

DairyQueen said:

Silvertabby said:

xylophone said:

Public sector pensions will continue to pay the CPI increase on all of the pension, including both pre and post 1988 GMP.

Private sector GMP increases will be subject to individual scheme rules/decisions.

Some are more equal than others......? 

Exactly.  This has already been discussed on these boards - can't remember when/where, but possibly on an Armed Forces thread?  To be honest, I'm surprised that there has been so little kicking off by private pension scheme members.

Possibly a reflection of widespread ignorance about GMP. Government got away with welching on its obligations to private sector employees because most don't know that the government withdrew the index guarantee on a part of the SP.

Not exactly widely reported at the time (or since).

In the case of the public sector, initially only those who reached SPA before 2021 would get the full GMP increases.  The theory was that those who reached SPA after that date would have time to accrue the new single tier pension, and that the difference between the new pension and the lower pension they would have received under the old rules was deemed to be enough compensation for not getting full GMP indexation.

However, this was further reviewed in March 2021 and it was decided that full GMP indexation (both pre and post 1988) would be extended to all of us who reached/reach SPA after that date.

I was already keeping a close eye on this, as my SPA is later this year and I have GMP from 1978 to 1997 with my RAF pension.  I can understand someone without any pension nous not keeping up with these changes. 

Of course, there's nothing to stop the private schemes from opting to pay full increases.....

xylophone

Of course, there's nothing to stop the private schemes from opting to pay full increases.....

But they can't print money.......