With inflation coming in below expectations in September, the state pension is set to rise 2.6% from April next year - slightly below the 3% increase seen in both 2017 and 2018.
The Office for National Statistics today confirmed Consumer Prices Index (CPI) inflation stood at 2.4% in September. It is the September figure that is used to set the so-called ‘triple-lock', which guarantees the state pension increases in line with the highest of inflation, July's ‘average weekly earnings growth figure or 2.5%. Since average earnings growth stood at 2.6% in July, this figure will be used to boost the value of the state pension. It means the annual flat-rate state pension will rise £221 next April to £8,767.20. For its part, the lifetime allowance will increase in line ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes