Inflation will see pensioners incomes rise next year, as the state pension benefits from the triple lock boost.
A rise in the cost of living will also add hundreds of pounds to the state pension next year as September's inflation figure will most likely see triple-lock inflation increase after last year's rise.
Broadstone claimed that even if CPI fell to six per cent over the next four months, pensioners could be set for £636 annual income boost.
After the government honoured its triple lock pledge with a 10.1 per cent increase to the State Pension for the 2023/24 financial year, those on a full state pension receive £10,600 a year – an increase of nearly £1,000 compared to the previous year which was 2022/23.
Inflation is proving more persistent than expected and this will lead to what Broadstone claimed would amount to a ‘jumbo hike’ in state pension payments.
For example, if CPI stays at its current level of 8 per cent the state pension would rise by £848 to £11,448 a year. Even if inflation drops to six per cent it would drive a £636 increase to the benefit.
Further triple-lock hikes?
Damon Hopkins, head of DC workplace savings at Broadstone, said, “Inflation is hammering household budgets, and as we’ve just seen from yesterday’s numbers, there doesn’t seem to be any immediate respite.
“While workers may look to their employer for wages to keep pace with inflation, retirees could be set for yet another significant boost to the state pension.
“Having benefitted from around a £1,000 increase to their State Pension last year, another substantial triple-lock hike will further embed its importance to the retirement income of millions of pensioners – present and future.
“Given the delicate state of the government’s finances it will raise further questions around the viability of the triple-lock. That said, it would take a brave Prime Minister to break a key manifesto pledge for the second time in three years so close to a General Election.”
