UK State Pension Set for a Substantial Increase in 2025
Jan 31, 2025

UK State Pension Set for a Substantial Increase in 2025

The UK state pension is poised for a significant rise in 2025, as part of the government's ongoing commitment to support retirees through the 'triple lock' policy. According to Yahoo Finance, pensioners who qualify for the full new state pension will receive £230.25 per week, amounting to £11,973 annually.

The 'triple lock' ensures that state pensions increase each year in line with the highest of earnings growth, inflation, or a fixed 2.5%. For 2025-26, the increase was determined by a 4.1% rise in wages. This move is expected to inject over £470 more into retirees' pockets compared to the previous year.

The full basic state pension, available to those who reached state pension age before April 2016, will rise to £176.45 per week, or £9,175 annually. This adjustment continues the trend of the 'triple lock' policy providing significant boosts to pension payments since its initiation in 2011-12.

Implications of the Triple Lock Policy

While the 'triple lock' remains in place, it has attracted criticism, particularly due to the large fiscal burden it places on current workers. As of 2024-25, the state pension costs around £137.5 billion, nearly half of total government spending on benefits. The system is funded on a pay-as-you-go basis, relying on taxes from today's workforce, raising concerns about its sustainability.

Experts have warned of continued uncertainty for future retirees, especially with plans to incrementally increase the state pension age. It is scheduled to rise to 67 between 2026 and 2028 and could reach 68 by 2046 for those born after April 6, 1977. Adjustments to the way pensions are paid or the eligibility criteria could be forthcoming, potentially causing friction among the electorate, especially as Labour, currently in power until at least 2029, remains committed to maintaining the 'triple lock'.

As concerns about the rising costs of the state pension grow, the government may need to seek solutions such as means-testing or tweaks to eligibility criteria. However, such changes are likely to spark significant debate about fairness and fiscal responsibility.

Source: IndexBox Market Intelligence Platform

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    1. REPORT DESCRIPTION
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    4. GLOSSARY AND SPECIFIC TERMS
  2. 2. EXECUTIVE SUMMARY

    A Quick Overview of Market Performance

    1. KEY FINDINGS
    2. MARKET TRENDS This Chapter is Available Only for the Professional Edition PRO
  3. 3. MARKET OVERVIEW

    Understanding the Current State of The Market and Its Prospects

    1. MARKET SIZE
    2. CONSUMPTION BY COUNTRY
    3. MARKET FORECAST TO 2030
  4. 4. MOST PROMISING PRODUCT

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    1. TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
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  9. 9. GLOBAL EXPORTS

    The Largest Exporters on The Market and How They Succeed

    1. EXPORTS FROM 2012–2024
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  10. 10. PROFILES OF MAJOR PRODUCERS

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  11. 11. COUNTRY PROFILES

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    • United States
    • China
    • Japan
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    • France
    • Brazil
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    • India
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    • Republic of Korea
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  12. LIST OF TABLES

    1. Key Findings In 2024
    2. Market Volume, In Physical Terms, 2012–2024
    3. Market Value, 2012–2024
    4. Per Capita Consumption, By Country, 2018–2024
    5. Production, In Physical Terms, By Country, 2012–2024
    6. Imports, In Physical Terms, By Country, 2012–2024
    7. Imports, In Value Terms, By Country, 2012–2024
    8. Import Prices, By Country Of Destination, 2012–2024
    9. Exports, In Physical Terms, By Country, 2012–2024
    10. Exports, In Value Terms, By Country, 2012–2024
    11. Export Prices, By Country Of Origin, 2012–2024
  13. LIST OF FIGURES

    1. Market Volume, In Physical Terms, 2012–2024
    2. Market Value, 2012–2024
    3. Consumption, By Country, 2024
    4. Market Volume Forecast to 2030
    5. Market Value Forecast to 2030
    6. Products: Market Size And Growth, By Type
    7. Products: Average Per Capita Consumption, By Type
    8. Products: Exports And Growth, By Type
    9. Products: Export Prices And Growth, By Type
    10. Production Volume And Growth
    11. Exports And Growth
    12. Export Prices And Growth
    13. Market Size And Growth
    14. Per Capita Consumption
    15. Imports And Growth
    16. Import Prices
    17. Production, In Physical Terms, 2012–2024
    18. Production, In Value Terms, 2012–2024
    19. Production, By Country, 2024
    20. Production, In Physical Terms, By Country, 2012–2024
    21. Imports, In Physical Terms, 2012–2024
    22. Imports, In Value Terms, 2012–2024
    23. Imports, In Physical Terms, By Country, 2024
    24. Imports, In Physical Terms, By Country, 2012–2024
    25. Imports, In Value Terms, By Country, 2012–2024
    26. Import Prices, By Country, 2012–2024
    27. Exports, In Physical Terms, 2012–2024
    28. Exports, In Value Terms, 2012–2024
    29. Exports, In Physical Terms, By Country, 2024
    30. Exports, In Physical Terms, By Country, 2012–2024
    31. Exports, In Value Terms, By Country, 2012–2024
    32. Export Prices, 2012–2024

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