State Pension payments usually increase each year in accordance with the Triple Lock Mechanism, which is valued by those receiving the pension sum. The state pension Triple Lock Mechanism sees the sum people receive increase annually by the highest of the following: earnings, the rate of inflation, or 2.5 percent. This year, the increase will be 2.5 percent, as confirmed by Work and Pensions Secretary, Dr Therese Coffey.
The state pension, at present, is split into two tiers, and which tier a person falls into is dependent on their age.
The ‘old’ scheme is known as the basic state pension and is available to women born before April 6, 1953 and men born before April 6, 1951.
People who are born after these dates will be required to claim the new state pension, but it is worth noting each scheme has different payments which will also vary according to someone’s contributions.
However, for one group of women, there are particular changes which are worth bearing in mind.
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Those in receipt of the basic state pension sum will receive a maximum of £134.25 per week under current rules.
However this will rise in the forthcoming tax year to £137.65.
The consumer website, Which?, explained this will amount to a pay rise of £176.80 in 2021/22.
It has therefore been confirmed the Married Woman’s Pension rate will rise from £80.45 to £82.45 per week.
Eligible women can therefore expect to receive roughly £330 per month worth of financial support from the DWP.
There are certain rules when it comes to the basic state pension which are worth bearing in mind.
To be in receipt of the full basic state pension, a person will need a total of 30 qualifying years of National Insurance contributions or credits.
If someone has less NI contributions than this, their state pension will be less than £134.25 per week, but they may be able to top this up by paying voluntary NI contributions.
People who are not eligible for a basic state pension, or who are not receiving the full sum, qualify for a ‘top up’ which is known as the Married Woman’s Pension.
Those who are not receiving the top up, but who believe they may qualify are encouraged to reach out to the Pension Service for more information.
Married women will also need to contact the Pension Service to receive a state pension top up in the following circumstances
- Where a spouse reached state pension age before March 17, 2008
- Where a married woman reached state pension age before their spouse
The government explained these women will receive any Additional State Pension or Graduated Retirement Benefit in addition to the top up, based on a woman’s own contributions.
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