# Pension increase

**URL:** <https://boards.straightdope.com/t/pension-increase/942192>\
**Category:** Miscellaneous and Personal Stuff I Must Share\
**Created:** [May 15, 2021, 10:03pm UTC](https://boards.straightdope.com/t/pension-increase/942192 "2021-05-15T22:03:53Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\
**Post date:** [May 15, 2021, 10:03pm UTC](https://boards.straightdope.com/t/pension-increase/942192/1 "2021-05-15T22:03:53Z")

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I have an index-linked pension from my years in the NHS and today I had a notification of the increase that applies from April this year 0.5%, yes half a per cent increase which amounts to a few pence.

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**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\
**Post date:** [May 16, 2021, 5:53pm UTC](https://boards.straightdope.com/t/pension-increase/942192/2 "2021-05-16T17:53:20Z")

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I know nothing of the specifics of UK pensions, but in the USA the national old age pension system (formally OASD, but informally “Social Security”) is indexed to a particular flavor of inflation.

No inflation this year? No increase for you Mr. & Ms. Pensioner. At least some years in the last 10 the increase has been derisory. Which mightily confuses the old folks who think they should / must get a “raise” every year just because they’re so awesome.

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**Author:** ![Riemann](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/riemann/32/3133_2.png) [@Riemann](https://boards.straightdope.com/u/Riemann)\
**Post date:** [May 16, 2021, 6:03pm UTC](https://boards.straightdope.com/t/pension-increase/942192/3 "2021-05-16T18:03:54Z")

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Here are the data on UK inflation (CPI & CPIH).

ex-housing costs year to March = 0.7% ( prior month 0.4%)  
with housing costs year to March = 1.0% (prior month 0.7%)

> **[Consumer price inflation, UK - Office for National Statistics](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/march2021)**
>
> Price indices, percentage changes and weights for the different measures of consumer price inflation.

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**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\
**Post date:** [May 17, 2021, 8:43am UTC](https://boards.straightdope.com/t/pension-increase/942192/4 "2021-05-17T08:43:37Z")

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I believe that the data point used for the year-on-year calculation is September.

It does tend to balance out over time though. I suspect that it will have risen sharply by the third quarter this year. 2% is forecast - whoo hoo. Maybe interest rates will be up too?