Retirement Living PENSIONS UPDATE 2022: GOOD NEWS & BAD NEWS April means another round of changes to pensions – in fact, some have been in force since January. It means a mixture of things for older readers
State pensions are rising in line with inflation
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raft of changes to pensions are being brought in for 2022 – some in response to the impact of the pandemic and some that have been on the cards for a long time. Many will see income for older people drop, some will bring an increase. We’ve had a look at the basic new rules, but how they apply to each individual will depend on circumstances. There will be increases to both the state pension and pension credit in 2022 which means more money coming in for retired people, and for younger savers new rules stop them losing cash on small pension pots worth £100 or less.
Rule change for expats
September’s inflation rate of 3.1 percent. The current full state pension is £179.60 a week, or around £9,339 a year. A rise of 3.1 percent adds an extra £5.56 a week, increasing it to £185.15 a week. The rise comes after the government confirmed it was axing the triple lock. This usually guarantees that the state pension will increase by the highest of three amounts: inflation, average earnings growth or 2.5 percent. But it was downgraded to a double lock to avoid a record 8 percent rise after the pandemic pushed earnings growth higher as workers returned from “The 3.1 furlough. percent
Changes are being brought in rise adds from January 2022 that affect Pension credit to £5.56 how state pensions are calculated increase up to £279 a week” for Brits intending to retire Pension credit will go up in abroad. British citizens who 2022 as well – and couples will move to live in, or move between, be able to get up to £278.70 an EU or EEA country or Switzerland a week if they qualify. This is a benefit will no longer be able to count time lived that gives you extra money to help with in Australia, Canada and New Zealand your living costs if you’re over the state toward their state pension. This doesn’t pension age and on a low income. The most affect those who were living in the EU, EEA you can currently get is £177.10 a week or Switzerland by 31st December 2021. if you are single or £270.30 for couples. From April this will go up to £182.60 and State pension to increase by £290 £278.70 – a rise of £5.50 a week for single The full new state pension will increase by people and £8.40 a week for couples. £290 per year from April 2022, in line with
Fees slashed for small pension pots
The changes will help contractors 128 SHIRE MAGAZINE | March/April 2022
Flat fees on small pension pots worth £100 or less are to be axed to stop ‘rip-off ’ charges wiping out savers’ funds over time. The changes would help workers who’ve built up many small workplace pensions through auto enrolment schemes during their working life. For example, this could be people who have changed jobs frequently or those who regularly take on short-term contracts of work.
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ddfellows is an organisation that has been bringing people together for over 200 years. Its aim is to encourage the development of true friendships, providing members with memories to cherish, helping them to grow and creating a better society. It doesn’t exclusively recruit older or retired people, but many find more time to commit at this stage in their lives. A national network of 113 branches supports 395,700 UK Sharing adventures members, of which 42,250 are helped by Oddfellows’ social, care and financial benefits. It has no political or religious affiliations and operates as a non-profit mutual. If you’re interested in joining to make friends, find support, volunteer help or just enjoy the chance to travel with like-minded people, groups meet regularly in Oswestry, Wem, Knutsford and Saltney. www.oddfellows.co.uk
