How could a weekly increase in your State Pension affect you? An increase of 4% has been set to begin in April 2020 (subject to any last minute adjustments). State Pension is subject to the ‘triple lock’ rule which is the highest of earnings growth, price inflation or 2.5% a year. Announced back in 2010 the increase was a way of making sure pensioners didn’t fall behind the working age population in terms of their State Pension purchasing power. This welcome news for current state pensioners comes with the disadvantage that State Pension is not funded in advance, so pensions are funded on a ‘pay as you go’ basis from today’s workers’ National Insurance contributions.
