State pensions will be increasing in April 2020 in line with the Government’s triple lock scheme. This means millions of pensioners will soon receive a boost in their pension payments.
April’s state pensions increase will be the biggest since 2012 – a 3.9 percent boost.
The triple lock system ensures each year state pensions go up, with three benchmarks to judge the amount by.
The amount is whichever is greater out of 2.5 percent each year, the rate of inflation or the average earnings growth.
The Consumer Prices Index (CPI) inflation measure for September 2019 was 1.7 percent, but the average earnings increased by 3.9 percent in the three months leading up to July, meaning this figure is the one used.
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How much state pension you receive is based on the type of pension you get.
For those on the old state pension – people who reached state pension age by April 6, 2016 – basic payments will increase by £5.05 a week to £134.25.
If you are on the new state pension – having reached state pension age after April 6, 2016 – payments will increase by £6.60 a week to £175.20.
State Pensions increase: From April, state pensions will increase by 3.9 percent (Image: GETTY)
State pensions are typically paid every four weeks into your bank account.
Most people top up their state pension with earnings, a workplace pension or other pension.
Your payment date is linked to your National Insurance number, and you will receive your first payment on the first allocated payday which follows your state pension age.
In order to receive the basic state pension, you must have a total of 30 qualifying years of National Insurance contributions or credits.
To be entitled to the new full State Pension, you will need to have made qualifying National Insurance contributions for 35 years.
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This means you either were
working and paying National Insurancegetting National Insurance Credits, for example for unemployment, sickness or as a parent or carerpaying voluntary National Insurance contributions
National Insurance contributions are made so you can qualify for certain benefits and the state pension.
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You will pay National Insurance if you’re 16 and over and either
an employee earning above £166 a weekself-employed and making a profit of £6,365 or more a year
Before you begin to pay National Insurance contributions you need a National Insurance number.
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You can check your NI record via the Government’s website here https://www.gov.uk/check-national-insurance-record which breaks down several pieces of information linked to your NI number.
what you’ve paid, up to the start of the current tax year (6 April 2019)any National Insurance credits you’ve receivedif gaps in contributions or credits mean some years do not count towards your State Pension (they are not ‘qualifying years’)if you can pay voluntary contributions to fill any gaps and how much this will cost