Changes to the State Pension – what does this mean for your retirement planning?

We have recently started a new financial year (6 April), which has meant changes to the State Pension have been implemented – are you up to date, and what does this mean for your retirement planning?

How much money will I get?

The 3.1% rise in the State Pension took effect from April 2022, for both the flat rate State Pension (introduced in April 2016) and the older ‘basic’ State Pension.

What does the 3.1% rise mean to you?

  • The full rate of new State Pension has increased to £185.15 a week, which is up from £179.60
  • The basic State Pension has increased to £141.85 (up from £137.60)

If you are unsure of how much you are likely to receive, check your State Pension forecast on the Gov.uk website by clicking here.

Is the State Pension enough to live off at retirement?

A full new State Pension is a lot less than the minimum wage salary, standing at just over £9,600 a year (including the recent increase). Therefore, it may be beneficial to think of your State Pension as a top-up to other income, as on its own, it usually not enough to live on (depending on the lifestyle you require when you retire).

Read our recent blog for more tips on how you can achieve your goals through retirement planning, ensuring you have the resources required to live the lifestyle desired..

Get in touch

The best way to ensure you have enough money for your retirement is to first understand how much you require, based on the lifestyle you would like to lead. Our expert financial advisers can help you understand what you need to do to have the desired retirement you have worked hard to achieve! If you would like advice or assistance on retirement planning, get in touch with a member of our financial planning team (financialplanning@pmm.co.uk).

The information contained within this article is purely for information purposes and does not constitute financial advice.

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