State pension to rise 2.5% with triple lock in 2021/22; lifetime allowance up 0.5%

2.5% widely expected

Hannah Godfrey
clock • 3 min read

The triple lock’s 2.5% rule is set to be triggered following a low CPI annual rate and low earnings figures, offering pensioners 2% above inflation.

On Wednesday (21 October) the CPI annual rate for the year to September was revealed to be 0.5%, while earnings figures, released in July, stood at -1%. As a result, the 2.5% rule on the triple lock will kick in, offering pensioners 2% above inflation. Pensioners on the new state pension will see a rise of £4.40 a week to £179.60 and those on the old state pension will see a rise of £3.40 a week to £137.65. Aegon pensions director Steven Cameron said: "The state pension is not funded in advance but on a ‘pay as you go' basis from today's workers' National Insurance contributions. T...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Perfect timing: How to advise clients on the right time to retire

Perfect timing: How to advise clients on the right time to retire

Striking a balance between health, wealth and personality

Richard Hulbert
clock 05 February 2024 • 4 min read
Baillie Gifford: Enjoying later life without an income from work

Baillie Gifford: Enjoying later life without an income from work

The latest from PA’ Digital Working Lunch webinar series

Professional Adviser
clock 12 December 2023 • 2 min read
Knowledge is power: How to help turn retirement dreams into reality

Knowledge is power: How to help turn retirement dreams into reality

Being on top of money is key to achieving retirement ambitions

Emma Barrow
clock 29 November 2023 • 6 min read