The state pension looks likely to increase by 8.5% from April next year in line with average earnings growth figures published by the Office for National Statistics (ONS) today (12 September).
The rise - the second significant uplift in the state pension in as many years - comes as a result of the triple lock policy retained by successive governments. It means the state pension increases by the highest of average earnings growth, inflation or 2.5% each year. AJ Bell said seasonally adjusted pay growth for the three months to July is the figure "that usually counts" for the triple lock, adding that the Consumer Prices Index (CPI) inflation for the year to September is the key inflation figure. The provider explained that assuming today's earnings growth figure is used for...
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