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pensioners After this, the state pension will likely rise by 4.8% next year National Statistical Office (ONS) figures were released on Wednesday.
Under the Triple Lock Guarantee, the state pension increases every April by the higher of total income growth from May to July of the previous year, or 2.5% in line with consumer price index (CPI) inflation in September of the previous year.
ONS data released on Wednesday showed that CPI inflation for September stood at 3.8%, the same level as both July and August.
Earlier released figures showed the total pay rise including bonuses for the July quarter was 4.8% – making it the key figure used for next year’s state pension rise.
The Secretary of State for Work and Pensions is required by law to conduct an annual review of state pensions and benefits and the results will be announced in November.
The expected 4.8% rise means people in receipt of the full new state pension could receive £241.30 a week – or around £12,548 a year.
Weekly payments for those receiving the full basic state pension could rise by around £184.90.
Many pensioners do not receive the full state pension, with National Insurance records counting up how much people will receive.
Alice Hahn, personal finance analyst at BestInvest by Evelyn Partners, an online investment platform, said: “For pensioners, the latest inflation data suggests another inflation-beating boost to annual state pension payments is coming next April.”
But he said the anticipated increase would push some pensioners closer to the point where they could be liable for income tax.
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Ms Hain said: “The personal allowance remains at £12,570 since the 2020-21 tax year, so unless the Chancellor amends it BudgetMore retirees may have to pay the tax bill themselves. Of course, some people may already be paying tax on their retirement income, either because they have deferred access to a state pension or because they also receive income from a private pension.
a report for standard lifeA survey of 6,000 people by Ipsos in June found that less than a third (29%) believe the triple lock will still be in place when they reach retirement.
Catherine Foot, director of Standard Life’s Center for the Future of Retirement, said: “Standard Life’s Retirement Voices 2025 report shows how uncertain people feel about their financial future, with confidence in the future of the state pension particularly low.
“Many doubt whether it will still exist in its current form by the time they retire, although there is no indication from policymakers that such a change is likely.”
Rachel Vahey, head of public policy at AJ Bell, said: “A sum of money Government Spending on state pensions is already set to increase over the next few years, and the sustainability of the triple lock may once again come under scrutiny.