Explained - Why State Pension Is Rising £488 To £13,000

1 - RETIREMENT CALCULATOR - https://financialeducation.co.uk/reti... - Use our interactive model to help you work out how much you need and how much you can spend in retirement. 2 - EQUITY RELEASE CALCULATOR - https://financialeducation.co.uk/how-... - More and more people are using equity release to fund their retirement. Use the free calculator to see how much you could borrow. 3 - RETIREMENT PLANNING CHECKLIST - https://financialeducation.co.uk/reti... - Download my free checklist and make sure you have not missed any of the big retirement decisions, deadlines or details. State Pension Rises £488 In April — What You'll Actually Get The full new State Pension rises by £488.80 from April, taking it from £12,547.60 to £13,036.40 a year, or £250.70 a week, the first time it has ever been above £13,000. That headline number is a maximum and not a rate, and most people will be paid less than it, because the triple lock only sets the percentage while your National Insurance record sets your pension. If you are looking for how much the State Pension will be in April 2027, whether the State Pension is going up by £488, or how many qualifying years you need for the full new State Pension, the figures are all below. The triple lock landed on average earnings growth of 3.9%, ahead of September inflation at 2.9% and the 2.5% floor, which puts this year's uprating a full percentage point ahead of prices. Also covered: whether you pay tax on the State Pension now the personal allowance is frozen at £12,570 until 2031, and what one missing year is worth when a voluntary Class 3 National Insurance contribution costs around £957. HOW MUCH WILL THE STATE PENSION BE FROM APRIL? The full new State Pension goes from £12,547.60 to £13,036.40 a year, which is £250.70 a week and an increase of £488.80. The old basic State Pension rises from £184.90 to £192.10 a week, or £9,989.20 a year, an increase of £374.40, leaving the two systems more than £3,000 a year apart. WHY IS MY STATE PENSION RISE LOWER THAN £488? The £250.70 weekly rate is the maximum, paid only on a full record of 35 qualifying years. On 30 qualifying years you are on roughly £11,200 and on 25 years roughly £9,300, so five missing years costs about £1,800 a year for the rest of your life. DO YOU PAY TAX ON THE STATE PENSION RISE? The personal allowance has been frozen at £12,570 since 2021 and stays frozen to 2031, so from April the full new State Pension sits above it. More than 7 in 10 pensioners are already basic rate taxpayers, and 20% tax on the £488.80 increase takes about £98, leaving a real rise of around £391. RESOURCES GOV.UK State Pension forecast: https://www.gov.uk/check-state-pension Office for Budget Responsibility: https://obr.uk ABOUT ME My name is Saq Hussain, and I have over 25 years of experience in the UK pension industry, helping to shape pension and retirement strategies for some of the world's largest organisations. BACKGROUND & ROLES Strategic Advisor: EY (Ernst & Young) Pensions Former Director: UK Head of DC Pensions, Benefits & Wellbeing at PwC Pension & Benefits Consultant: Aon, Willis Towers Watson and KPMG PRESS CITATIONS This Is Money (Daily Mail): https://www.thisismoney.co.uk/money/p... The Express: https://www.express.co.uk/news/politi... CONNECT WITH ME Retirement & Pensions: https://financialeducation.co.uk Help & Advice: https://helpandadvice.co.uk Later Life Care Planning: https://ukcareguide.co.uk LinkedIn:   / saq-hussain   LISTEN ON PODCAST Spotify: https://open.spotify.com/show/6786MNM... Apple Podcasts: https://podcasts.apple.com/gb/podcast... DISCLAIMER: For educational purposes only. Not regulated financial advice. Consult a qualified advisor before making pension decisions.