Another aspect of pension planning is the factoring in or the State pension but Enable’s IFAS know that this is prone to political change. The current amount the State Pension pays has increased for the 2019/2020 tax year increasing by 2.6% from 6 April 2019. It means retirees on the New State Pension will receive £168.60 a week, while those on the Basic State Pension will get £129.20.
You will have heard the term triple-locked pensions if nowhere else then in political debate. At the moment the amount the new State Pension pays is down to the triple lock system. The Triple lock is calculated, in short at the greater of annual price inflation as measured by the Consumer Price Index (CPI), earnings growth of 2.5%.
Pensioners entitled to the full new State Pension will see their weekly payments increase by £4.25 from £164.35 this tax year to £168.60 from April 2019. The change means they will receive an extra £221 by the end of the tax year, with total annual income boosted from £8,546.20 to £8,767.20. Those that receive the full old Basic State Pension have also seen their payments increase by £3.25 a week, rising from £125.95 in 2018/19 to £129.20 in 2019/20. The 2.6% increase means that, annually, these pensioners got a total of £6,549.40 during the past tax year compared to £6,718.40 in 2019/20 – a rise of £169.
How would you manage if all you had was your state pension? Enable’s IFAs of Bishops Stortford know that factoring your state pension into your long term financial planning is important but it cannot be relied on to offer the standard of living you may have become used to. Our experienced advisors can help you look at all your long-term financial plans to support your retirement needs.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individually tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain.
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