People drawing their new state pension from April are likely to see a rise of more than £500 a year, latest wages data suggests.
Under the “triple lock” policy, the state pension goes up each year by either 2.5%, inflation, or average earnings growth – whichever is the highest figure.
The Office for National Statistics revealed total pay including bonuses for the three months to July was 4.7%, which is likely to be the figure used for the annual increase.
The triple lock formula was introduced under the Coalition government in 2011.
Not all pensioners get the full amount, because it depends on years of qualifying contributions through the National Insurance system.
For many retired people, the state pension is not their only source of income as they will also receive money from workplace or private pensions.
BBC News
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