State Pension set to rise more than expected
Page Content
The State Pension will rise more than previously expected next year after new figures from the ONS, published today, show it has revised average earnings growth for May-July from 4.7% to 4.8%.
The State Pension rises each year through the triple lock mechanism, which sees it rise by the highest of: May-July’s wage growth, September’s inflation data, or 2.5%.
May-July’s wage figures have trumped the other factors this year, meaning wage growth will be used to increase the State Pension from April 2026.
The new figures show the New State Pension will now rise by £574.60 a year, up from the previous estimate of around £562. That will take the New State Pension to £12,534.60 a year. The Basic/Old State Pension will rise to £9,614.80.
| 2025/26 | 2026/27 | 2025/26 | 2026/27 | ||||
| £pw | £pw | increase | £pa | £pa | increase | ||
| Basic state pension | £176.45 | £184.90 | £8.45 | £9,175.40 | £9,614.80 | £439.40 | |
| New state pension | £230.25 | £241.30 | £11.05 | £11,973.00 | £12,547.60 | £574.60 |
Source: LCP
Related News
FCA proposes new rules for classifying investors
Use our fiscal drag calculator to see how much frozen tax thresholds have cost you
What kind of investor are you?
“I want a guaranteed, fixed rate of interest”
Not sure what kind of investor you are?
Take Our Investor Persona Quiz
