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The state pension is set to rise by 3.9 percent this April, and this applies to both the new state pension and the basic state pension. It will increase under the triple lock.
This means that it rises each year by whichever is the highest out of earnings, meaning the average percentage growth in wages in Great Britain; prices, meaning the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI); and 2.5 percent.
This year, the increase is tied to wage growth.
In April the full rate of the UK’s new state pension will increase by 3.9 percent from £168.60 to £175.20 per week.
For a person who gets the full new state pension, this means they would get an extra £344 a year.
READ MORE: State pension age is rising - does the change coming into effect this week affect you?
Meanwhile, the full weekly rate of the basic state pension will increase at the same rate, from £129.20 to £134.25 per week.
This means that the full basic state pension will increase by £5.05 per week, while the full new state pension will rise by £6.60 per week.
The DWP points out that under transitional arrangements for the state pension, not everyone will get this amount.
It adds that the new state pension takes National Insurance records into account, and that some people will receive more and others less than this amount.
DON'T MISS
Some people who get the state pension, however, will not see their state pension increase in April.
The government website explains how the state pension is affected if a person retires abroad.
Here, it states that should a person claim the state pension abroad, then it will only increase each year if they live in certain places.
These are:
- The European Economic Area (EEA)
- Gibraltar
- Switzerland
- Countries that have a social security agreement with the UK (but one cannot get increases in Canada or New Zealand).