A financial expert has said that state pension payments should go up by more than the 8.5 percent increase pensioners are receiving this month.
Yiannis Zourmpanos, senior contributor at Bountii, told Express.co.uk: “While an 8.5 percent bump to pensions is welcome, it may not keep up with how fast essentials are getting more expensive.
“Pensions probably should go up more, maybe another three to four percentage points, to better match actual inflation and let retirees live comfortably.”
Many household bills are going up from this month, including water bills and council tax, while broadband and mobile tariffs are increasing by up to 8.8 percent.
The 8.5 percent increase was determined in line with average earnings metric under the triple lock, which Mr Zourmpanos said is a sustainable policy for the next few years.
He said: “One big reason is planning ahead. By sticking to triple lock rules, the Government can better plan their pension costs long-term and make sure the system stays steady.
“This long-term planning lets them predict pension spending better and makes it easier to keep the finances stable as time goes on.”
Others have raised concerns the triple lock may have to change given the rising cost of living. Certified financial planner Steven Kibbel, from Day Tradingz, said: “While extra money helps, out-of-control increases in necessities could quickly erase gains intended to preserve purchasing power.
“If basic costs consistently outpace adjustments over time, rethinking the pension formula may become prudent to safeguard savings.”
Ron Stefanski, founder of Business Guru, also said that the future of the triple lock is uncertain. He commented: “A great deal hinges on how strongly inflation persists and whether wage growth outpaces it.
“My view is that while small adjustments may be tolerable, abandoning the triple lock altogether risks hardship. A middle path preserving pensions’ integrity over both short and long terms would serve all parties best.”
Mr Zourmpanos encouraged pensioners who are struggling to make ends meet to make sure they are using any Government support, such as council tax discounts.
People of state pension age may also want to check if they are eligible for Pension Credit, as benefit payments have also just increased, by 6.7 percent.
With the new rates, Pension Credits tops up a person’s weekly income up to £218.15 for single claimants and up to £332.95 for couples.
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