The UK State Pension is set to rise to approximately £250.70 per week next April, following earnings growth of 3.9%, according to a new report.
The increase, which would take the full new State Pension from £241.30 to about £250.70 a week, would see it exceed the personal tax allowance, currently set at £12,570.
Confidence in the pension's future declines
Fewer than half of UK adults believe the State Pension will still be available to everyone by the time they retire, the Standard Life Centre for the Future of Retirement found. Confidence in its long-term future stood at 49%, down from 51% last year.
Only 23% of people aged 18 to 65 expect the triple lock to remain in place when they retire. Government proposals would change the triple lock from 2030, while ensuring payments rise by at least inflation or 2.5% each year and keep pace with earnings over time.
Retirement expectations and living standards
More than half (51%) of those surveyed expect to work beyond State Pension age, with millennials the most likely at 58%. Almost half (45%) of those yet to retire think their living standards will be worse than their parents'.
Catherine Foot, director of the Standard Life Centre for the Future of Retirement, said: "The triple lock has played an important role in improving pensioner living standards over the past 15 years, yet growing questions about its long-term affordability and fairness between generations have now resulted in a proposed change of direction from 2030."
