State pension set to rise by 4% in 2025 but 'many pensioners will not get full amount'
State pension payments to rise by 4% in 2025 but 'many pensioners will not get full amount'
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State pension payments look set to rise by four per cent next year but analysts are warning that "many pensioners" will not end up claiming the "full amount".
Thanks to the triple lock, the rate paid by the retirement benefit is guaranteed to increase by either the rate of inflation, average earnings or 2.5 per cent; whichever is higher.
With inflation easing to around two per cent, figures from the Office for National Statistics (ONS) published today found wages would be the determining metric.
Total pay, which includes bonuses, jumped by four per cent between May and July which means pensioners are in line for an extra £460 a year.
However, experts are sounding the alarm that not everyone will be able to benefit from the full triple lock boost.
This is due to the fact that many pensioners fall short of claiming the full state pension due to not having enough National Insurance credits.
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Pensioners get a payment rise every year GETTYIn order to get the complete amount, claimants need to have 35 years of National Insurance contributions under their belt.
For certain households, this is a difficult goal to reach if someone has left the workforce for an extended period of time.
This is often the case if someone is dealing with an illness or leaves their job to look after children.
On top of this, those on the basic state pension receive less than those on the new state pension.
The basic state pension is reserved for older men who were born before April 6, 1951, and women born before April 6, 1953.
As it stands, the full basic state pension offers pensioners £169.50 per week as opposed to the full new payment's £221.20 per week, or £11,502 annually.
With 2025's triple lock, state pension claimants on the full amount will get £11,962 per year.
Becky O'Connor, the director of Public Affairs at PensionBee, described the coming payment hike as "significant" at face value.
She explained: "This is another significant rise in the State Pension as wage growth has outstripped inflation and the base increase of 2.5 per cent that makes up the triple lock guarantee.
"Labour has committed to keep the triple lock so such rises look set to continue and will raise further questions over the sustainability of the state pension in its current form."
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The triple lock boost guarantees the state pension will rise every year
PAHowever, the pension expert warned that not every older Briton is in line for a big payday come April next year.
O'Connor added: "Increases in the state pension are often used to highlight the disparity between pensioner benefits and those for working people.
"However it's important to recognise that many pensioners do not receive the full amount and so will not get this headline increase of £460 a year.
"It's also vital to bear in mind that many pensioners are completely dependent on the state pension and do not receive any other form of income - and can no longer work.
"Cuts to the Winter Fuel Allowance are likely to affect some of the poorest pensioners, who are on lower amounts of state pension. This group of pensioners need all the support they can get."