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Pensioners to reap rewards of rise of Basic State Pension

The Basic State Pension is to rise to £95.24 next April providing welcome news to cash hungry pensioners.

The announcement that September’s RPI has now hit 5 per cent means that pensioners can look forward to this rate feeding through to their pensions next April.

Currently, the Basic State Pension is £90.70 a week and the increase of 5 per cent will provide a boost of £20 a month.

The September RPI announcement is the figure used to calculate what the Old Age Pension will increase to for the coming 2009-2010 tax year.

Commenting, Hargreaves Lansdown’s head of pensions research Tom McPhail says the rate announcement should be “good news for pensioners, particularly as there are strong indications that inflation will be falling off by next April”.

He warns though that a possible risk for pensioners is that the current pressure on Government finances might prompt the Chancellor to hold back some of this rate increase.

The Bank of England projections back in August indicate that by the time this pension increase is delivered in April next year, inflation will already have fallen back below 4 per cent, McPhail says.

He adds that inflation has not been this high since July 1991 and in 2000 pensions increased by just 75p after inflation figures the previous September rose by a mere 1.1 per cent. However, back in September 1975, inflation hit a high point of 26.6 per cent.


Mike Kellard

This week sees the culmination of nearly two years of work for Axa Winterthur Wealth Management chief executive Mike Kellard.

Protection could see mass exodus

Firms which have sold protection policies without explaining their true value could see widespread cancellations as people tighten their belts, warns Aegon PR manager Mark Locke.

Yield to reason

In case it passed you by over the summer, the FSA has used one of its snappily titled quarterly consultations to try and make a case for retaining the reduction in yield figure to show consumers how much an investment costs.

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Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.


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There is one comment at the moment, we would love to hear your opinion too.

  1. Why does the Christmas bonus still remain at ten pounds, as it was introduced about twenty odd years ago,

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