gap between old and new state pension

starvinmarvin
starvinmarvin Online Community Member Posts: 7 Listener
in Money and bills
Hello,
With the triple lock in place, state pensions will rise.
I received my state pension some years ago and it is no where near the current new state pension.
With my pension rise being less than the new state pension rise, each year, the gap between the two state pensions will grow.
In 20 years time, hopefully still here, the gap between the two pension could be much larger.
Has Scope any plans in place to address this shortfall between the new and old pension systems for older pensioners.
Is my logic about this Correct?

Comments

  • starvinmarvin
    starvinmarvin Online Community Member Posts: 7 Listener
    Hi 
    Sadly this is not the case. Disabled people get the state pension, this will effect them.
    The gap will rise 8.5% increase on say 1000, will be less than 8.5% on 1200.
    This gap will grow, year after year
  • Kimi87
    Kimi87 Online Community Member Posts: 5,641 Championing
    Pension Credit is available for those pensioners on low incomes https://www.gov.uk/pension-credit 
  • Jimm_Alumni
    Jimm_Alumni Scope alumni Posts: 5,717 Championing
    Hey @starvinmarvin, Scope have been campaigning for more government support around the Cost of Living crisis. Specifically around an Energy Social tariff alongside 148 other organisations such as Age UK. There is no specific pension policy we are campaigning for, but we know many people who are pension age are also disabled. 

    There has not yet been a policy update since the new budget came out earlier this month. If anything happens I will let you know :)
  • 66Mustang
    66Mustang Online Community Member Posts: 14,991 Championing
    starvinmarvin said:
    Hi 
    Sadly this is not the case. Disabled people get the state pension, this will effect them.
    The gap will rise 8.5% increase on say 1000, will be less than 8.5% on 1200.
    This gap will grow, year after year
    Yeah but the difference between the two would be the same, proportionally, after x years

    A £1,000 pension after ten 5% increases would be £1,629

    A £1,200 pension after ten 5% increases would be £1,955

    What was a £200 gap will be £326 after 10 years which is exactly ten 5% increases

    IOW...being £326 worse off in 10 years is the same as being £200 worse off today

    Hope this makes sense?

    (Not saying it's right or wrong just trying to explain)
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    starvinmarvin said:

    With my pension rise being less than the new state pension rise, each year, the gap between the two state pensions will grow.

    This is where Pension Credit comes into it. Those on New state Pension are less likely to be entitled to Pension Credit, unless they are entitled to a Severe disability Premium which increases their maximum weekly income. 

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