Have you read it? They've done some seriously dodgy jiggery pokery, assuming pensions rise by 4.5pc every year.... but without also taking inflation into account
. Which is a bit ridiculous, given that the triple lock is the highest of inflation, wage growth or 2.5pc. and real-terms wage growth isn't all that healthy...In fact, recent experience is actually that COL is increasing faster than the triple lock, so it doesn't make any sense at all.
You get a certain 'value' of pension each year, and - certainly during the COL crisis - what you can buy with that pension is going down, not up. So if anything they should apply a negative percentage.. If you're already dead, you don't need to buy groceries at the inflated rate 10 years later.
So let's stick to this year's rates, and to be generous assume that the value stays the same (maybe the COL crisis won't go on forever).. State pension is £230.25 per week maximum. Which comes to £11,973 oer year
19 years of state pension in Hampshire would give a pensioner there with life expectancy £227487. And they're pretty likely to be paying tax on that at least at basic rate, possibly at higher rate, which would take it down as far as £136492.
The Blackpool resident with 10 years of state pension would get £119,730. Might not pay any tax on it, and may even get some means-tested benefits to bump it up.
So the Hampshire resudent gets a maximum of £107,757 more, but net of tax it's likely to be as little as £17k difference.Add in the means tested benefits, and the Blackpool resident almost certainly nets more in real terms from the state during their pension years, despite the lower life expectancy.