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As of April 2019, the state pension rates are subject to tremendous changes. According to Which ?, the government has confirmed that basic and state-level pension rates will change as of April 6 of next year. The changes also include a number of other benefits. Those retiring after next April, as well as those who are already applying for a state pension, will see a slight increase in their amount.
Basic pension rate of the state
People receiving the basic state pension will experience a weekly increase in 2019/2020.
They will receive £ 3.25 more a week, raising the state pension from £ 125.95 to £ 129.20.
Retirees benefiting from the state basic pension will thus receive an additional € 169 per year, equivalent to £ 6,718.40 in annual income.
New pension rates of the state
Those who benefit from the new single-tier state pension will also see their payments increase.
Instead of £ 164.35, members of this group will receive £ 168.60 – which will give them £ 4.25 more per week.
Over an entire year, this represents an additional £ 221 and a total annual income of £ 8,767.20.
Additional state pension rates
Which? "If you have reached the legal retirement age before April 2016, your pension will be made up of two parts: the basic pension and the supplementary pension – sometimes referred to as the second state pension."
The state supplemental pension increases with the CPI inflation rate announced in September.
As a result, in April 2019, the state supplemental pension will only increase by 2.4%.
There will always be a ceiling on the additional state pension that you can earn, although this remains reasonable from £ 172.28 to £ 176.41 per week.
Annuity credit
This benefit is awarded based on earnings.
Starting next April, the two installments of pension credits will increase by 2.4%. The guaranteed credit will increase to £ 167.25 from £ 163 per week for a single person and £ 255.25 from £ 248.80 for a couple.
The second part of the annuity credit, savings credit, will see its limit go from £ 13.40 to £ 13.72 for a single person and from £ 15.99 to £ 15.35 for a couple.
Personal life allowance
The life annuity allowance is the maximum that can be put into retirement savings without being taxed.
This is also increasing according to the CPI rate, which will increase from £ 1,030,000 to £ 1,055,000 from next year.
Which? claiming this means an additional saving of £ 24,800 in tax-free retirement savings.
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