Where you live could mean you miss out on state pension rise next year | Personal Finance | Finance

Raising the state pension by next year has been a hot topic in recent months, with the government opting to temporarily suspend the triple foreclosure of the state pension and therefore limit the amount that retirees will receive. However, for about half a million people, that’s a moot point, as their state pension won’t change anyway.

However, people living elsewhere do not receive any annual increase in their state pension income, despite having contributed to national insurance while previously living in the UK.

It is estimated that 500,000 retirees will therefore miss an increase of more than three per cent in their state retirement income next year.

The new state full pension has increased by £ 228.80 between tax years 2020/21 and 2021/22, and it will increase by £ 288.60 next year.

Concerns have been expressed that the increase in state pensions may not be enough anyway, as worrying inflation rates could eat away at additional cash – meaning retirees are losing money. money in real terms.

The state pension is usually increased using the triple lock-in policy, which ensures it is increased by the higher of triple digits: average income growth, inflation, and 2.5%.

However, in a controversial move, the government decided to temporarily suspend the triple lockdown for fiscal year 2022/23, denying retirees a raise of more than eight percent in the process.

The move was made because the average figure for income growth was unusually high, believed to be due to millions of Britons returning to work after the leave scheme closed.

The government has said that this change will only be valid for one year and that the triple lockdown will be reinstated in the usual way for the 2023/24 tax year.