State Pension Estimates and Increases

*For a personal estimate, skip to the link at the end of the article.

Don’t rely on the number you are provided however, its liable to change as evidenced by (one of) the current pressures on the Chancellor.

Rishi Sunak is facing calls to revisit his decision last year to suspend the “triple lock” on annual state pension increases, adding to pressure on the government over big cost of living increases.

Two former pensions ministers have urged the government to offer help to the most vulnerable, as they struggle to cope with rising energy bills and with inflation expected to rise above 6%.

Senior Conservatives admit the issue is of increasing concern to Tory MPs. “It’s just begun,” said one. “Some people want the triple lock reinstated.”

Ministers say they are braced for parliamentary trouble. Tory MPs are already urging Sunak to take a range of measures to alleviate cost of living pressures, including cutting VAT on energy bills, suspending “green levies” on fuel bills or scrapping planned tax rises in April.

Since 2011, people have received protection for their state pensions under the triple lock, which guaranteed an annual rise based on inflation, average earnings growth, or 2.5%, whichever is the highest.

The Conservatives pledged to maintain it in the party’s 2019 general election manifesto. Under the triple lock, the state pension would have risen in April by more than 8%, thanks to a Covid-related anomaly in average wage growth, surpassing Goldman Sachs’s expectation of 6.8% annual inflation in that month.

But Sunak, under pressure to find savings, has suspended the wage element of the triple lock for one year; instead the state pension will rise by 3.1% in April, based on inflation in September 2021.

Enough about Rishi though, how much are you going to get in retirement and when are you going to get it?

You’re eligible for the State Pension if you’ve paid, or been credited with, National Insurance contributions (NICs) which my parents referred to as their 'Stamp' (cue shrug emoticon). In the past there have been different categories of NICs which is why the State Pension can be confusing.

If you are or were employed, your NICs are deducted from your salary. These are paid directly to the Government, along with your employer’s contributions. If you are or were self-employed it’s your responsibility to pay your NICs, which are classed differently.

The full New State Pension will be £185.15 pw (£9,627 pa) from 2022.23.

To see how much you’re currently due to get, use the Government’s State Pension Calculator.

Check your State Pension forecast - GOV.UK (www.gov.uk)

This will also tell you what age you will receive it from. If you are 20 years from that age, don’t expect it to be that when you get there…I estimate it will increase to a minimum of 68 as each successive Government, red or blue, struggles to balance the books that were already out of balance even before Covid.