You are using an older browser version. Please use a supported version for the best MSN experience.

State pension: Britons urged to act in order to ‘get every penny' from DWP sum

Daily Express logo Daily Express 01/12/2021 Rebekah Evans

State pension payments are of vital importance to millions, who expect the sum to increase each year. However, the well-known Triple Lock policy has been abandoned by the Government this year, leaving pensioners in shock. The Triple Lock was supposed to increase the state pension by whichever was the highest of three components: wage increases, inflation or 2.5 percent.

This was abandoned, though, due to warped wages data which would have seen an abnormal increase of potentially over eight percent.

The Government has now officially announced an increase to the state pension next year of 3.1 percent.

This will mean the full weekly payment rises from £179.60 to £185.15 per week from April 2022.

But experts have acknowledged that for some people this rise will not be satisfactory.

READ MORE: New pension rules to help over 55s get 'best retirement possible'

state pension UK 2021 © Getty state pension UK 2021

Ed Monk, Associate Director at Fidelity International, said: "Its justification does have merit, but will still be tough to swallow for pensioners.

"Like the rest of us, they are seeing their living costs rise substantially.

"The 3.1 percent rise pensioners will get has already been made to look small.

"Inflation has now risen again to 4.2 percent in October, and is expected to rise further in the coming months."


DWP update as £800 payment available to Britons before Christmas [UPDATE]

State pension set to increase for married women next year [INSIGHT]

State pension age Britons with arthritis may get boost of up to £358 [EXPLAINED]

However, people do not just have to sit back, and they can take action to remedy their circumstances.

Mr Monk acknowledged inflation-proof income is expensive to replicate in other ways which are not the Triple Lock.

But it can be done, albeit only if a person chooses to purchase an annuity.

An annuity is thought of as an insurance product which allows a person to swap their pension savings at the point of retirement in favour of a guaranteed regular income that will last until the person dies.

state pension UK © EXPRESS state pension UK

These products are inflation linked, but it may be a harder task to replicate the maximum annual income from the state pension.

Mr Monk stated it would take a savings pot of £337,000 based on a healthy 65-year-old making this purchase.

For this reason, the expert added, it will be essential for Britons to ensure they are entitled to the maximum state pension sum possible.

The new state pension is based on a National Insurance record once a person reaches state pension age.

According to the Government, 10 qualifying years are usually needed to get anything from the state pension at all.

Some 35 qualifying years are required to get the new full state pension in many circumstances.

People will also be able to check when they will receive the state pension to ensure they are on track.

This can be done via the Government's website where the state pension forecast tool can be found.


More from Daily Express

image beaconimage beaconimage beacon