Good news for pensioners as their state pension is set to increase by up to £74.80 each month. Despite the increase next year, many pensioners are facing hardships over the winter period due to the rising cost of living.
Those on the full new state pension will see their weekly payments increase from £185.15 a week to £203.85 a week.
Pensioners on the full basic state pension will also get a payment boost with their payments increasing from £141.85 a week to £156.20.
Experts have shared what retirees can do to protect them from rising inflation ahead of the 10.1 percent state pension increase in April.
Shona Lowe, financial planning expert at abrdn, spoke exclusively with Express.co.uk about the reinstatement of the triple lock, and how pensioners can make the most of their income for the time being.
He said: “The Chancellor’s pledge to protect the state pension triple lock will have been welcomed with open arms by many pensioners. However, with this increase not coming into effect until next April, retirees will need to take matters into their own hands in the meantime to mitigate the impact of inflation on their savings and investments.
“People shouldn’t panic and make hasty decisions but instead need to take some time to plan the best way through these challenging times.
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If individuals can afford to leave cash alone but don’t want to invest it, she suggested they shop around for an account that gives them the access they need with an interest rate that goes some way towards keeping pace with inflation.
Additionally when it comes to investments, she stressed Britons should make sure their attitude to risk remains up to date and revise the investment strategy to see how they can maximise growth potential whilst staying aligned to that.
Ms Lowe continued: “For those in or approaching retirement, try to avoid taking money out of your pension at a time of rising inflation and challenging investment markets, particularly if you have seen your fund value drop.
“If you can reduce what you take or stop withdrawals altogether for a period of time it, leaving it invested means you don’t crystalise your losses and provides an opportunity for investment growth or recovery.
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No matter what people decide to do with their money once they retire, they need to make sure they can actually access their money if they need to do so.
Britons are warned to not assume they are not entitled to any benefits.
Even if someone thinks they’re getting everything they are entitled to, it still makes sense to check.
Any benefits will contribute to the overall income, and in the future could help to pay for care costs, day to day bills or to maintain one’s independence.
Britons are encouraged to use the benefits calculator on the Government website to check what they may be entitled to.
Additionally people can trace lost money and pension pots to see if they have extra cash stashed away.
Britons may have money stored away in lost bank accounts, pensions, or Premium Bonds if they’ve changed their name or address several times.
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