State Pension

For those who have met the eligibility requirements and made sufficient National Insurance contributions, the state pension is a payment provided by the government every four weeks to the recipient.

This year, the triple lock's relationship to wages resulted in an 8.5% rise starting on April 8, making it worth:

• The full external flat-rate state pension (for individuals who achieved state pension age after April 2016) is £221.20 per week.
• The entire old basic state pension (for individuals who achieved state pension age before to April 2016) is £169.50 per week.

This is an increase from the whole, new flat-rate state pension which was £203.85 each week, and the entire, former basic state pension which was £156.20 per week.

Triple lock

The state pension grows every April in accordance with the highest of these three metrics under the triple lock system:

• inflation as determined in September of the prior year by the Consumer Prices Index (CPI)
• the UK's overall average salary growth
• 2.5%

In 2010, the Conservative-Liberal Democrat coalition government implemented the triple lock.

It was created to make sure that rising living expenses or the incomes of the working population wouldn't outweigh the value of the state pension.

State Pension & Retirement Age

The state pension is presently received by about 12 million individuals.

Pension payments begin for men and women born between October 6, 1954, and April 5, 1960, at age 66.

But the state pension age is rising for anyone born after this date:

• a progressive increase to 67 for individuals born on or after April 5, 1960
• a steady increase to 68 for people born on or after April 5, 1977, between 2044 and 2046

Before the 2023 Budget was announced, there was conjecture that the second rise might be delayed, maybe until the late 2030s.

The administration did, however, state in March 2023 that it had no intention of altering the schedule and that a decision was anticipated in 2026, following the subsequent general election.

The International Longevity Centre UK research group released a paper in February 2024 that raised the possibility that the state pension age will need to rise sooner than planned.

The institution monitors the effects of declining birth rates and rising life expectancy.

In 2022–2023 the state pension cost £110.5 billion, which is slightly less than half of the entire amount the government spends on benefits.

The Office for Budget Responsibility estimates that in 2023–2024, this will increase to £124 billion.

(Sources: bbc.co.uk)