You are here

How your benefits increase with the cost of living

Your deferred benefits are held in your local pension fund where they increase in value every year in line with the cost of living, until payment.

After it is brought into payment, your pension will continue to receive cost of living increases every year, as it is paid to you: as the cost of living increases, so will your benefits.

If your benefits are paid on or after age 55, or are paid before age 55 because of ill health and you are permanently incapacitated from engaging in any regular full-time employment, your benefits will be increased each year in line with the cost of living. If your benefits are paid before age 55 for any other reason, your pension is normally paid at a flat rate until age 55. Your pension will then be increased from age 55 to the level it would have been, if it had been increased every year since your date of leaving.