Autumn Statement 2015: Chancellor George Osborne has confirmed that the government will keep the triple lock, with the basic state pension rising to £119.30 a week from April 2016.
The single-tier pension rate has been set at £155.65 a week. This will be available to those reaching pensionable age from April next year.
Osborne said: “I can confirm that next year the basic state pension will rise by £3.35 to £119.30 a week. That’s the biggest real terms increase to the basic state pension in 15 years.
“Taking all of our increases together, over the last five years, pensioners will be £1,125 better off a year than they were when we came to office.”
Hugh Nolan, director, JLT Employee Benefits, added: “Keeping the triple lock is great news for pensioners. However, this will be paid for by the current working generations. These people won’t get such good pensions for themselves, especially with the delay in the minimum contribution for auto-enrolment.
“Therefore, this increases the intergenerational unfairness, with younger people losing out. The reality is that the working people of today will have to save a lot more to guarantee themselves a decent retirement.”