Britain’s state pensions will get their third highest increase in 10 years in 2022. Despite the increase, the elderly community expected them to pocket even more. So how much does the pension credit increase and what can retirees expect to receive?
How much will payments increase in 2022?
Depending on the type of pension, individuals can expect to see an additional £288 come through their doors in 2022.
This is thanks to the value of the state pension which will rise by 3.1% next year, as the earnings link has been removed from the calculation of the triple lock.
Therefore, the 3.1% figure is now in line with inflation.
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In previous years, the triple lock calculation was a government guarantee that guaranteed the state pension would increase year on year by the highest of three figures.
These figures being 2.5 percent, the growth rate of average incomes or the rate of inflation.
Originally introduced in 2010, the process was discontinued for the 2022-23 tax year due to average revenue growth irregularities.
Either way, the 3.1% growth still represents the third biggest increase in the state pension since the introduction of the triple lockdown.
What could you spend this extra income on?
The average pensioner, according to Key Retirement, spends £210 a week on basics such as food, clothes and bills.
So one option might be to use your extra pension credit to cover these amenities.
On the other hand, you could shell out and use your extra cash to help fund a budget vacation abroad.
During the winter months, flights from the UK to southern Europe can cost as little as £29 depending on where you are flying from.