The state pension is something which many people will rely on as a form of income during their retirement. It is usually paid every four weeks, and this is “in arrears”, meaning the recipient is paid for the past four weeks – rather than the coming four weeks.
These rules differ if a person lives abroad.
As the world settles into the new year, in the UK, many pensioners will likely be excited to hear that the amount they get per week is due to rise.
In April 2020, both the basic state pension and the new state pension will increase by 3.9 percent.
These payments increase each year under the triple lock, meaning it rises by the highest of 2.5 percent, the average rise in earnings, or inflation.
This year’s increase is tied to wage growth.
How much is the state pension rising by?
The increase of 3.9 percent will apply to both types of state pension, however the amount differs between the two.
The full weekly rate of the basic state pension is set to increase by £5.05 per week from £129.20 to £134.25 per week.
Meanwhile, the weekly full rate of the new state pension will increase by £6.60 per week from £168.60 to £175.20 per week.
Crunching the numbers, this means that a person who gets the full rate of the new state pension would get an extra £344 a year.
The Department for Work and Pensions (DWP) points out that under transitional arrangements for the state pension, not everyone will get the aforementioned amounts.
It adds that the new State Pension takes National Insurance records into account, and that some people will receive more and others less than this amount.
The website adds that a person’s pension will go up to the current rate if they return to live in the UK.
However, if they live outside of these aforementioned countries, then they will not get the yearly increases.
People are directed to contact the International Pension Centre if they want advice on how their pension might be affected if they’ve already retired and are thinking of moving abroad.