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State pension and inflation

nonolerigolo
nonolerigolo Posts: 298 Forumite
Part of the Furniture 100 Posts Combo Breaker
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

Comments

  • Linton
    Linton Posts: 18,400 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    You would start at £185 plus inflation plus a bit extra if the triple lock applies.
  • Scarum
    Scarum Posts: 117 Forumite
    Part of the Furniture 100 Posts Name Dropper Mortgage-free Glee!
    edited 25 February 2023 at 9:03AM
    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.
  • Thank you both, that make sense
  • 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
    pensionpawn Posts: 1,017 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    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
    Silvertabby Posts: 10,443 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 25 February 2023 at 3:37PM
    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
    Altior Posts: 1,218 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    Not if it becomes unsustainable under its current structure. Which is a considerable possibility. 
  • Audaxer
    Audaxer Posts: 3,552 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    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.
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