Pensioners’ finances hit hard in 2022

Welcome to 2022! How are you feeling about it? Here at Together HQ we have been thinking about what this year will mean for older people’s finances. By our reckoning there are four big things that we should all really be thinking about.

  1. Higher ­energy bills. We are all going to be paying more for to keep warm at home.
  2. Rising shop prices. There is no denying it, it is costing everyone far more at the checkout and the petrol pump. the loss of the ­pension triple lock and 1.3 million working OAPs paying national insurance for the first time.
  3. The suspension of the “triple lock” on the UK pension for the 22/23 tax year. For anyone who doesn’t know, the “triple lock” was a guarantee that the state pension would not lose value in real terms, and that it would increase at least in line with inflation. It was introduced in 2010 and it ensured that the state pension would increase by the greatest of the following three measures:
  • Average earnings
  • Prices, as measured by the Consumer Prices Index (CPI)
  • 5 per cent

But due to the rising wages that have been brought about by the pandemic, the government believed that this is now unaffordable, at least in for now.

  1. And lastly, for any pensioners earning over the threshold when National Insurance kicks in (currently £9,568 a year) there will be a 1.25% levy on earnings over that sum. It is estimated that this will affect more than 10% of pensioners over the age of 65 and still working.

So it’s quite the combination that will hit a great many people in the bank balance!

We are all going to have to keep a close on eye on the older people in our lives to ensure that they can maintain a good standard of living in the next few weeks and months.