Pensioners are ‘big winners’ with triple-lock set to rise by 3.9%, lifting state pension to £13,000 – business live
Summary
The UK state pension is expected to increase by 3.9% next year due to rising wages, under the triple-lock system that raises pensions by the highest of wage growth, inflation, or 2.5%. This increase would raise the full state pension to more than £13,000 annually, benefiting many pensioners.Key Facts
- The triple-lock system sets pension increases based on the highest of wage growth, inflation, or 2.5%.
- Recent data showed wages rose by 3.9% over the past year, likely setting the pension increase.
- The state pension could rise to over £13,000 next April if the rise is confirmed.
- Inflation is currently below wage growth, so an earnings-based increase is expected.
- Some experts warn the government might consider suspending the triple lock.
- Pensioners receiving only the state pension may avoid tax even if the pension rises above the personal allowance.
- However, pensioners with private pensions might still face tax, even if their income is lower.
- The UK job market shows weakness in many private sectors, which could impact economic outlooks.
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