State pensions are increasing later this year, under the Government’s triple lock system. The Government’s triple lock system was first brought into effect in 2011 and makes sure the basic state pension increases base on one of three amounts.
This amount is whichever is greater out of 2.5 percent each year, the rate of inflation or the average earnings growth.
These three benchmarks are what give the system the name ‘triple-lock’.
In 2020 the state pensions are increasing – so millions of pensioners will receive some extra funds.
However, those who reached state pension age before April 2016 aren’t linked to the triple lock system.
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State Pensions 2020: State pensions will increase in April (Image: GETTY)
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Increases will be implemented from April 2020, and under the triple lock system, the state pension will be given a 3.9 percent lift.
This is the biggest increase since 2012 and will be a welcome boost for millions.
If you are on the new state pension your weekly allowance will rise to £175.
State Pensions 2020: State pensions increase each tax year under the triple lock system (Image: GETTY)
This is an increase of £6.58 per week as of April 2020.
For those on the basic state pension will see their weekly allowance increase to £134.
This will be an increase of £5.04 per week.
State pensions are normally paid every four weeks into your bank account.
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According to Gov.uk, you are eligible for the basic state pension if you were born before
April 6, 1951 if you’re a manApril 6, 1953 if you’re a woman
For those born on or after these dates, it is the new state pension you are entitled to.
State Pensions 2020: There are certain criteria you must meet to be eligible for a state pension (Image: GETTY)
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.
To receive the basic 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.
Put simply 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
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For those with fewer than the stated qualifying years, your basic state pension will be less than £129.20 per week.
However, you might be able to top this up by paying voluntary National Insurance contributions. See more on that here.
More changes are coming this year, with the state pension age to increase to 66 in October for both men and women.
Until November 2018, the state pension age had been 60 for women and 65 for men.