The state pension could rise by seven percent reaching £11,342 in April 2024, however, not all pensioners will get the full amount.
Pensioners could enjoy another sizeable boost as inflation proves to be a “much tougher nut to crack” than the Bank of England hoped, experts suggest.
Following triple lock rules, the state pension rise next year will be determined by September’s CPI figure for inflation from this year.
The Bank of England predicted inflation will drop to seven percent by September, the point when the state pension rise for 2024/25 will be locked in for the next year.
If the Bank of England’s forecast comes to pass, the full state pension will rise from £10,600 a year to £11,342 a year in April 2024.
Although the state pension could rise above £11,000, not everyone will receive an increase.
Some pensioners will not receive the full new state pension, as they may have fallen short in terms of National Insurance contributions.
Britons usually need at least 10 qualifying years on their National Insurance record to get any state pension.
They’ll need 35 qualifying years to get the full new state pension and at least 30 to get the full basic state pension.
They can get a proportion of the new state pension if they have between 10 and 35 qualifying years.
Britons are urged to check their National Insurance records so they know if they will qualify for the full state pension.
Britons can check how many National Insurance credits they have by getting a state pension forecast on the Government website.
Alice Guy, head of pensions and savings at the investment platform interactive investor, said: “Pensioners will enjoy another bumper state pension hike due to inflation proving a much tougher nut to crack than the Bank of England hoped.”
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However, she stresses that many older people rely on the state pension as their main source of income. Although the boost “will be a lifeline to many people on the breadline,” many are facing “real hardship”.
Britons may be able to boost their state pension by thousands of pounds, so checking how much they are due could be worthwhile.
Qualifying years are accumulated through working but can also be earned by receiving certain benefits or making voluntary contributions.
A full NI year usually costs £824 and adds up to £275 each year to one’s pre-tax state pension.
For this tax year, 2023/204 the full amount of state pension is worth £203.85 a week or £10,600.20 a year.
She added: “Many poorer pensioners are facing real hardship as they spend a big proportion of their household income on increasingly expensive necessities like food and energy.
“Pensioners are one of the most vulnerable groups to rising prices as they have limited options to boost their income.
“Many of these older people face mounting rental and mortgage costs as inflation and rising interest rates take effect.”
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