State pension increase: Will my state pension increase in 2020? How much by?
State pensions are due to increase later this year, with millions expected to be better off thanks to the government’s triple lock scheme. The triple lock system was first brought into effect in 2011 and ensures the basic state pension increases based on one of three amounts.
Those receiving their pension will receive a boost come April 2020, when the increase is implemented.
The amount pensions go up by is whichever is greater out of 2.5 percent each year, the rate of inflation or the average earnings growth.
Often state pensions are an addition to other income, such as a workplace or other type of pension.
You can check your State Pension online here to find out what you could get and when you could get it.
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How much will my state pension be in 2020?
From April 2020, and under the state pension will be given a 3.9 percent lift.
This is the biggest increase since 2012 and will be a welcome boost for millions.
If you are on the new State Pension the full rate will rise to £175.20 in April.
However, everyone’s payments will vary – some will be above or below the full rate.
Those below the full rate will see a 3.9 percent increase on their payments, whilst those above the full rate will see a 3.9 percent increase on the part below £168.60 and the amount above will increase by 1.7 percent.
This is an increase of £6.58 per week as of April 2020.
For those on the basic state pension will see their weekly allowance increase to £134.
This will be an increase of £5.04 per week.
To read more about what you get from a state pension, visit this website here.
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Who is eligible for a state pension?
According to Gov.uk, you are eligible for the basic state pension if you were born before
- April 6, 1951, if you’re a man
- April 6, 1953, if you’re a woman
For those born on or after these dates, it is the new state pension you are entitled to.
If you reached State Pension age before 6 April 2016, you’ll get the State Pension under the old rules instead.
Your payment date is linked to your National Insurance number.
This means you will receive your first payment on the first allocated payday which follows your state pension age.
To receive the basic pension you must have a total of 30 qualifying years of National Insurance contributions or credits.
To be entitled to the new full State Pension, you will need to have made qualifying National Insurance contributions for 35 years.
Put simply this means you either were
- working and paying National Insurance
- getting National Insurance Credits, for example for unemployment, sickness or as a parent or carer
- paying voluntary National Insurance contributions
To find out more about National Insurance contributions visit the Government’s website here.Source: Read Full Article