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...

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