Aegon: Public sector pension announcement means less hope of Government upgrading April’s 3.1% increase to state pensioners

The Treasury has announced an increase to public sector pensions. In response, Steven Cameron, Pensions Director at Aegon said:

“Today, the Government has confirmed that public sector pensions will increase by 3.1% this April, based on the rate of inflation last September and in line with the increase previously announced to state pensions. This means pensioners in public sector schemes will, like state pensioners, receive an increase significantly below the current rate of inflation which was 5.4% in the year to December and expected to rise further by April. While this follows the approach taken in previous years, it suggests the Government is not about to think again and offer a more generous state pension increase.”