The new year is just around the corner, prompting many to start thinking about their finances for the upcoming year. During 2021, the increase to the state pension will go ahead as usual.
In April 2021, the state pension will rise by 2.5 percent under the triple lock.
Currently, the full new state pension is £175.20 per week.
It will therefore rise to £179.60 per week.
This means that those who can get the full new state pension rate will see a weekly boost of £4.40.
The full basic state pension is £134.25 a week at this moment in time.
It will increase by an extra £3.40 from next April to £137.65 per week.
It is very important to note that not everyone will get the full state pension rate, and there also may be instances when a person can get higher amounts.
Those who wish to do so can get a state pension forecast online, and this should tell them how much they can get and when.
It’s also important to be aware that where a person lives can also impact whether they get the uprated amount.
Provided they’ve paid enough UK National Insurance contributions to qualify, individuals can claim the state pension abroad.
On December 31, 2020, the UK’s Brexit transition period will end.
As such, those thinking about moving to an EEA country or Switzerland after this date may wonder whether they will be affected by the state pension uprating rules.
The government website currently states: “If you are not covered by the Withdrawal Agreement and you move to live in an EEA state or Switzerland on or after 1 January 2021, your right to receive some UK benefits will change.
“Some benefits may only be paid for a time-limited period in these countries in future.
“The changes to these rules will depend on the outcome of negotiations with the EU.
“If you are considering moving to the EU on or after 1 January, please continue to check this page for future updates.”