You will only receive the full 0.5% increase if:
If you are under age 55 and you did not retire due to ill health, then you will receive no increase. When you turn 55, your pension will increase to the level it would have been had it increased every year since you retired.
If you started your pension after 27th April 2020 you will only get part of the increase. The table below shows the percentage increase based on the date you started your pension.
|Date Pension Began||Pension Increase|
|On or before 27 April 2020||0.5%|
|28 April 2020 to 27 May 2020||0.46%|
|28 May 2020 to 27 June 2020||0.42%|
|28 June 2020 to 27 July 2020||0.38%|
|28 July 2020 to 27 August 2020||0.33%|
|28 August 2020 to 27 September 2020||0.29%|
|28 September 2020 to 27 October 2020||0.25%|
|28 October 2020 to 27 November 2020||0.21%|
|28 November 2020 to 27 December 2020||0.17%|
|28 December 2020 to 27 January 2021||0.13%|
|28 January 2021 to 27 February 2021||0.08%|
|28 February 2021 to 27 March 2021||0.04%|
The increase is applied on 12th April 2021. As this is part way through the month, only part of your pension will increase. From May onwards, your monthly pension will include the full increase. A payslip is issued to you in April confirming your new pension amount. If it has increased by 50p or more per month, you will also receive a payslip in May showing your new full monthly payment.
If the cost of living is negative or zero your pension will not increase that year. Instead its value will remain the same.
Whether retirement is in 5 years or 25 years, the main reason most of us pay into the pension scheme is to make life a little more comfortable at some point down the line.
Annual Pension Statements for 2021 are now available for members currently paying into the Fund.
Many of our members who pay Additional Voluntary Contributions (AVCs) through Prudential may have experienced recent delays in Prudential's service offering.
Now could present the perfect mid-point opportunity to have a quick pause for a finance refresh.