State pension increase ‘falls short’ of rising costs – how to best use the extra cash | Personal Finance | Finance
The 8.5 percent rise in the state pension will fall short of covering the rising costs pensioners face, an expert has warned.
Rudy Khaitan, managing partner of Senior Capital, told Express.co.uk the Government needs to do more to help older Britons.
He said: “While the 8.5 percent increase in the state pension is a step forward, it falls short of adequately addressing the financial challenges faced by pensioners amidst the UK’s cost of living crisis.
“To truly alleviate their strain, more robust measures are imperative to ensure the financial security and well-being of UK retirees.”
The criticism comes after another expert called for the state pension to increase by 12.5 percent to keep up with the soaring cost of living.
Mr Khaitan spoke about how state pensioners should prioritise how they use the extra funds with the pay increase.
He explained: “Pensioners can leverage the state pension by directing it towards vital expenses such as housing, utilities and healthcare.
“Examples of supplementing income through part-time employment or downsizing can, therefore, be beneficial.
“Tapping into community services can further optimise their financial resources and enhance overall quality of life amid these trying times.”
But he warned there is a “genuine concern” the payment uprating is lagging behind the constant increase in living costs, with household bills rising this month, including water bills, council tax, broadband and mobile.
Mr Khaitan urged: “It is paramount for policymakers to vigilantly monitor the situation and enact measures that ensure the pension increment keeps pace with the UK’s living situation.”
With the 8.5 percent increase, the full basic state pension has increased from £156.20 a week to £169.50 a week while the full new state pension has gone up from £203.85 a week to £221.20 a week.
The April increase is currently determined by the triple lock policy, which means payments increase in line with the highest of 2.5 percent, the rise in average earnings or inflation.
Research from the Centre for Ageing Better revealed that almost one in five UK pensioners are on the poverty line.
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