Wales has an older population on average than the rest of the UK.
Many people are totally reliant on their state pension to keep the lights on, the house warm and the fridge stocked. Changes to that pension can impact people in several ways both for the better and for the worse.
To help you keep on top of the changes The Express has reported six changes that are coming in over the next month that it could be worth you being aware of.
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State pension triple lock
The first key change is is the return of the state pension triple lock. The mechanism was temporarily suspended last year, due to warped earnings data as a result of Covid-19, meaning the Government deemed a predicted eight percent rise as unaffordable.
However, this was only intended to be temporary, and the triple lock will return from April 2023 onwards. Pensioners can expect a 10.1 percent rise in line with September 2022’s CPI inflation figure. The triple lock ensures the state pension rises each year by whichever is the highest of 2.5 percent, inflation or average earnings.
New state pension
The second change, as a result of the triple lock’s return, is the rise of the new state pension. The full new state pension is currently worth £185.15 per week, but this will rise to £203.85.
People are eligible if they are a woman born on or after April 6, 1953 or a man born on or after April 6, 1951. To get any new state pension, people typically need 10 qualifying years of contributions, rising to 35 for those who want to secure the full sum. Some may get less than the full new state pension if they were contracted out before April 6, 2016.
Basic state pension
Another change to make note of is an increase to the basic state pension - the older scheme. The full old state pension will rise from £141.85 to £156.20 per week for eligible people.
It is available to those who retired before April 6, 2016, the Government has confirmed. For the full basic state pension, individuals usually require some 30 qualifying years of contributions.
Married Woman’s Pension
The fourth change relates to the Married Woman’s Pension - a type of the basic state pension. Under the old scheme, women could derive payments from their spouse or civil partner’s National Insurance contributions. The sum is worth 60% of the basic state pension rate, and the DWP has confirmed this will rise from £85.00 to £93.60 per week.
Over 80s pension
In addition, another change relates to the over 80s state pension. Individuals cannot get the over 80 pension if they reached state pension age on or after April 6, 2016, but for older people, this could be particularly useful.
Eligibility is not based on the National Insurance contributions one has made. The Over 80 state pension is intended for those who receive a basic state pension of, currently, less than £85.00 a week, or nothing at all. The rate is set to rise from £85 per week to £93.60 a week in the forthcoming tax year.
Additional state pension
The final important change to kick in next month relates to the Additional state pension.
There is currently no fixed amount for this sum, and what a person gets is usually dependent on how long they paid National Insurance for, their earnings, and whether or not they were contracted out.
However, the maximum sum people can receive is set to change from April 2023. It will increase from £185.90 to £204.68 per week for eligible individuals.
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