UK pensioners set for 4.8% boost under triple lock next April

The final piece of the triple lock puzzle clicked into place last week when September’s inflation figure came in at 3.8%. This is slightly lower than was expected and far lower than the 4.8% 12-month average annual growth rate of regular UK wages.

For context, the triple lock aims to raise the state pension by whichever is highest of 2.5%, inflation and average wage growth. This means that from April next year pensioners are in line for a 4.8% boost.

So, someone on a full new state pension would see their weekly payment rise to £241.30 per week. Someone on the full basic state pension would see their weekly payment boosted to £184.90 per week.

However, it’s also worth noting that people on the basic state pension will not receive the full triple lock increase on their entire pension payment. While the base payment rises in line with the triple lock, extra payments such as the additional state pension will rise in line with inflation so those elements will increase by 3.8% next year. These increases are not yet set in stone – we will need to wait for the budget for confirmation.

Read more: This free service could help you recover a lost pension worth thousands

We often talk about the state pension in terms of the full amount you can receive but the reality is that many people receive less. This is often due to gaps in their national insurance record, which occur when you’ve spent time out of the workforce – for instance working abroad, unemployed or caring for loved ones. To receive a full new state pension, you usually need to have 35 years’ worth of national insurance contributions and to receive anything you need to have 10 years’ worth.Someone on a full new state pension would see their weekly payment rise to £241.30 per week.·Halfpoint Images via Getty Images

It’s well worth taking the time to see how much you are on track to receive. The state pension forms the very backbone of your retirement income and it’s important to get the most from it that you can. Get a state pension forecast from gov.uk – this will tell you how much you are on track for and if you have gaps then you can put a plan in place to do something about it.

First of all, check your national insurance record to make sure it is correct, if it isn’t then you have time to get it corrected. If you do have gaps, check to see if you qualified for a benefit that comes with a national insurance credit at that time. Examples include child benefit, jobseekers allowance and universal credit. If you qualify then you may be able to backdate a claim and receive the national insurance credits.

Read more: Rising pension age hits women hardest

If this isn’t an option, then you could also check to see if you can pay to fill in the gaps. If you were to pay to plug a gap for this tax year it would cost you around £920 and you can fill gaps going back six tax years. Partial years cost less to fill. For each year you fill you will get an extra 1/35th extra state pension so this can be very cost effective.

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However, before you hand over any money you should check with the Future Pension Centre that you really will benefit. If you were contracted out at any point in your working life, you may find that you won’t benefit from making extra contributions. Contracting out is where you opted out of the state second pension in return for paying less National Insurance, and this can impact how much state pension you receive. The practice has been abolished for many years, but it does still affect people so it’s worth checking with the Future Pension Centre to see what your options are.

Read more:

What you need to think about before taking a tax-free pension lump sum Why relying on inheritance for retirement is a bad idea and what you could do instead Why lifelong housing costs are derailing retirement planning for older people

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