State pension set for boost as inflation to increase in next month’s figures
Inflation is set to increase to 7.1 percent in August which could mean the state pension payments increase by another £700 a year.
A rise in inflation could provide an extra boost to the increase in the state pension next year.
Analysts are predicting a rise in inflation in August which could mean figures for September stand at 6.9 percent - this is the number used for the inflation element of the triple lock.
This would mean the full new state pension would increase from around £10,600 a year to £11,330 a year, an increase of £630.
A 6.9 percent increase will mean the basic state pension increases from £8,122 a year to £8,683 a year.
Experts are predicting inflation will continue to fall in the figures for July, dropping by just over a percentage point to 6.8 percent.
But the rise in prices will then go up in August with the rate increasing to 7.1 percent. The figure will then drop down slightly for September, to 6.9 percent, acccording to predictions.
The September figure is used for the triple lock, a policy which guarantees the state pension increases in line with the highest of inflation, the rise in average earnings or 2.5 percent.
The increase is then implemented the following April with the start of the new financial year providing a welcome boost for state pensioners.
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High levels of inflation last year meant pensioners received a record 10.1 percent boost in April.
The full new state pension is currently £203.85 a week while the full basic state pension is £156.20 a week.
A person usually needs 35 years of National Insurance contributions to get the full state pension and 30 years of contributions to get the full basic state pension.
A person may be able to increase their state pension payments by voluntarily paying National Insurance contributions if they have any gaps in their record.
People can usually only pay to top up gaps in their record up to six years ago, but individuals can currently do this as far back as the 2006/2007 tax year.
Individuals can top up their contributions over this extended period until April 2025 with the turn of the tax year.
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