State pension and inflation

nonolerigolo

I will get the state pension in 25 years. I am on track to get the full amount of £185. In 25 years would this amount be £185 plus inflation for the 25 years. Or would I start at £185. Thank you very much

Linton

You would start at £185 plus inflation plus a bit extra if the triple lock applies.

[Deleted User]

It will increase with average earnings, inflation or 2.5% (the triple lock), whichever is the higher of the triple lock until the government changes tac like it did in 2022.

If inflation was an average of 2.5% over the next 25 years the state pension would be £343.

nonolerigolo

Thank you both, that make sense

Dazed_and_C0nfused

nonolerigolo said:

I will get the state pension in 25 years. I am on track to get the full amount of £185. In 25 years would this amount be £185 plus inflation for the 25 years. Or would I start at £185. Thank you very much

If you check your forecast again a few days after 6 April you'll see it has increased to £203.85/week to reflect the triple lock increase for the 2023:24 tax year.

pensionpawn

The way to think about it is that regardless of the future numerical amount of state pension, it's value is "supposed to" keep pace with current costs. In other words compare the current value of the state pension, £10k6 from April against your outgoings after they will have reduced in retirement (kids moved out, no / reduced mortgage / no life insurance etc). Saves a lot of indexing...

Silvertabby

A lot of people don't seem to realise that increases to the State pension don't just benefit actual pensioners, but all those yet to reach SPA as well.

Altior

Not if it becomes unsustainable under its current structure. Which is a considerable possibility. 

Audaxer

nonolerigolo said:

I will get the state pension in 25 years. I am on track to get the full amount of £185. In 25 years would this amount be £185 plus inflation for the 25 years. Or would I start at £185. Thank you very much

Yes, it increases with inflation, as you will see from April this year it will go up to around £203.