From April 2019, the state pension will receive its annual boost, but how much more can retired workers expect to receive?
Some pensioners could receive a pay rise of £221 this year, seeing their weekly payment increased by 2.6%. But it's not the only change to the state pension coming on Saturday.
Here we explain the new state pension rates for the 2019-20 tax year and how much extra you could receive from 6 April.
If you reached state pension age before April 2016, you'll be entitled to the basic state pension plus any additional state pension you may have built up.
Both the basic and single-tier state pension are protected by something called the 'triple-lock' guarantee.
This essentially means that they rise each year by the greater of the following:
From 6 April 2019, the state pension will increase by average earnings growth, which came in highest at 2.6%.
If you're entitled to the full new single-tier state pension your weekly payments will increase by £4.25 taking them from £164.35 to £168.60.
This means that you'll get an extra £221 in state pension by the end of the 2019-20 tax year - bringing your annual state pension income to £8,767.20.
|New state pension (weekly)||£164.35||£168.60||+£4.25 a week|
|New state pension (annual)||£8,546.20||£8,767.20||+ £221 a year|
If you receive the basic state pension, you'll get a weekly boost of £3.25; increasing your payments from £125.95 to £129.20.
Over the 2019-20 tax year, basic state pensioners will receive an extra £169 a year, making the overall annual income £6,718.40.
The table below shows how basic state pension rates have changed.
|Basic state pension (weekly)||£125.95||£129.20||+£3.25 a week|
|Basic state pension (annual)||£6,549.40||£6,718.40||+£169 a year|
The additional state pension isn't protected by the triple-lock guarantee and only increased by the rate of CPI inflation (announced in the previous year's September). This means that from 6 April 2019, the additional state pension will increase by 2.4%.
The maximum additional state pension you can earn is capped. In the 2019-20 tax year, this cap rises from £172.28 to £176.41 per week.
It's made up of two parts:
This tops up your weekly income so it reaches a minimum sum set by the government.
This will rise from £163 a week to £167.25 per week for a single person and from £248.80 to £255.25 for a couple.
This is an extra payment from the government to reward you for saving towards your retirement.
The maximum you can get as a single person rises to £13.72 a week (from £13.40), while the maximum for a couple goes up to £15.35 a week from £14.99.
Similarly to the additional state pension, your lifetime allowance increases by the rate of last September's CPI inflation which is 2.4%.
From April 2019, the pensions lifetime allowance increase will from £1,030,000 to £1,055,000.
This works out to an extra £24,800.
The table below shows how the pensions lifetime allowance has changed since 2006.
Following a month-longprocess which started in November last year, the state pension age was increased 65 for both men and women on 6 December 2018.
The state pension age will now rise again to 66 for both menand women by October 2020 and 67 by October 2029.
A further increase to 68 is due to take place between 2037 and 2039.