PUBLISHED: 08:17, Fri, Jan 1, 2021 | UPDATED: 08:19, Fri, Jan 1, 2021
January 2021 has arrived, meaning many may well be kicking off the new year by setting their financial goals and budgets for the months ahead. For some, this may involve working out how much what their income will look like.
Those who are state pension age, or who are nearing it, may be interested to hear about a change taking place to the available amount later this year.
In April this year, the payment will rise.
It will increase by 2.5 percent, thanks to the triple lock mechanism.Insurance Loans Mortgage Attorney Credit Lawyer
Under this system, both the basic and the new state pension rise each year by whichever is the highest:Earnings – the average percentage growth in wages (in Great Britain) Prices – the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI) 2.5 percent.
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State pension UK: The payment rises annually via the triple lock mechanism (Image: GETTY)
The government website explains people who have a protected payment will see it rise each year in line with the CPI.
Following the increase, the full new state pension amount will rise from £175.20 per week to £179.60.
Meanwhile, the full basic state pension will change from £134.25 to £137.60 per week.
Not everyone will receive the full state pension, with one reason