The Treasury announced a rise in the State Pension yesterday.

The news formed part of Chancellor Rishi Sunak’s spending review.

David Stevens, retirement director at LV=, explained: “The announcement that the State Pension will rise by 2.5% is good news for millions of people relying on it. However, a change is likely in 2022. Average earnings have dropped significantly because of furlough but next year the scheme ends and  it is likely that the Triple Lock formula will have to change as average earnings jump because of the end of furlough.

“Confidence in the value of the State Pension is a crucial part of retirement planning but it is also important for people to make extra savings for their retirement. To secure a comfortable retirement people should consider joining their company pension schemes, saving as much as they can into it and taking financial advice to help make wise choices.”