State pensions to see a massive hike above inflation

According to inflation estimates, the “triple lock” will raise state pensions by 8.5% in April 2024 based on salary growth.

The triple lock increases the state pension by 2.5%, the May-July average annual salary increase, or September-June inflation.

Today, the ONS reported 6.7% CPI inflation in September 2023. This is below last month’s 8.5% three-month pay growth before July 2023.

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The April 2024 state pension would rise 8.5% to £11,501.22. The £12,570 personal allowance means hundreds of thousands of seniors will pay income tax for the first time next year.

At 8.5% inflation, the state pension will rise. If the personal allowance stays the same, more people will pay income tax. According to inflation estimates, the “triple lock” will raise the state pension by 8.5% in April 2024 based on salary growth.

The triple lock increases the state pension by 2.5%, the May-July average annual salary increase, or September-June inflation.

Today, the ONS reported 6.7% CPI inflation in September 2023. This is below last month’s 8.5% three-month pay growth before July 2023.

The April 2024 state pension would rise 8.5% to £11,501.22. The £12,570 personal allowance means hundreds of thousands of seniors will pay income tax for the first time next year.

Is your pension justified? Use our free pension calculation online. Tom Selby, head of retirement policy at AJ Bell, said keeping the state pension triple lock guarantee will cost taxpayers billions of pounds, but prime minister Rishi Sunak will deem it a “price worth paying,” given the 2019 general election and the Conservatives’ poll position.

NHS bonuses may have increased July’s Treasury “smoothed” 7.8% earnings. It might eliminate triple-lock earnings and raise the state pension by 6.7% to meet inflation.
COVID-19 raised pay; hence, the lock’s earnings aspect was ignored in 2022–2023. In 2023–2024, the state pension rose 10.1%, matching September 2022 inflation, its greatest increase ever.

Dean Butler, managing director of retail direct at Standard Life, said the state pension was rising but not enough to meet the £12,800 Pensions and Lifetime Savings Association minimum retirement standard.