personal finance

State Pension increase 2021/22: How much will State Pension increase next year?

The Bank of England predicts a two percent fall in wages in the current year, followed by a four percent increase next year as masses of workers come off furlough and economic activity starts up again.

If the Bank of England’s predictions are true, this would prompt a 2.5 percent rise in the State Pension next year, followed by a five percent change in 2022, giving a two year hike of an unprecedented 7.6 percent.

It would also mean the State Pension would cost the Government £3billion more in 2022, and an extra £2.1billion more in 2021.

In April 2020, the State Pension increased by 3.9 percent in its biggest rise since 2012 in accordance with the triple lock system.


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