State pension payments are set to rise by 8.5 percent next year but experts are warning that this is “not sufficient” to cover the living expenses of older Britons.
The triple lock pledge means that the amount offered by the state pension is guaranteed to boost annually.
Payment rates are hiked depending on the rate of inflation, average earnings or 2.5 percent; whichever is higher.
Due to average wages being higher than these other metrics, state pensions are likely to go up by 8.5 percent in 2024
Despite this generous rate rise, experts are sounding the alarm that this will not be enough to live on by itself.
Read more… State pension claims to be reviewed for fraud and error
As it stands, the weekly rate for the new state pension comes to £203.85 which equates to £10,636.60 over the year.
If the 8.5 percent rate boost is implemented per the triple lock, pension payments will be raised by £17.35 a week to £221.20.
This means that the full new state pension will be £11,541.90, a staggering £905.30 hike from the year before.
In comparison, the basic state pension will become £8,844.27 if the triple lock promise is kept which is a sharp jump from the £8,150.29 yearly payment in 2023.
Adam Pope, a pensions expert from Spencer Churchill, broke down why these sums of money should be the only income older households rely on.
He explained: “While the boost is welcome, it’s essential to recall that relying solely on the state pension may not be sufficient for a comfortable retirement.
“This development should serve as a prompt for individuals to review their entire retirement strategy, including any private or occupational pensions, to ensure a comprehensive and safeguard financial future.”
The retirement expert urged pensioners to be aware of the returns they are getting from their pensions.
Mr Pope added: “The commitment to the triple lock and the resulting boost is a strong signal of uphold for pensioners.
“However, it also highlights the need for ongoing vigilance in the pension industry to protect individuals from mis-selling and to ensure that all pension products, whether state or private, are transparent and in the best interests of the retirees.”
The next payment boost to the state pension and other DWP benefits will be implemented in April 2024.
