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State pension increase greater than expected

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The state pension is expected to rise by 3.9% in April 2020 – more than double the rate of inflation and the largest increase for some time! The increase equates to just over £6 per week if you receive (or will receive in the future) the full state pension.

Because Tory ministers pledged to protect the state pension with a ‘triple lock’, it rises by inflation, 2.5% or the average earnings – whichever is highest. I t would seem that average weekly earnings rose by 3.9% in the year May to July, prompting the proposed increase.

But, before we get too excited, the increase still has to be approved by Parliament!

In addition, following the announcement that those over 75 will now have to pay for TV licences, they will actually only receive about half of the increase if it is all approved.

Jasmine Lambert Chartered Financial Planner
Jasmine Lambert
Jasmine is the Managing Director and Senior Financial Planner at Redwood Financial. She helps clients manage and grow their wealth and protect their estate. Jasmine also provides expert advice in our FREE Redwood Webinars, where you can learn more about Wills, Trusts and Estate Planning.
Redwood Financial is one of the south’s leading Investments, Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Estate Planning, Lasting Powers of Attorney, Probate, Pensions, Savings & Investments, we can advise on any situation.
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