The state pension is likely to rise by more than £500 a year from next April under the triple lock promise.
The triple lock guarantees the state pension rises every April whichever is higher out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5%.
Mirror readers are being asked for their thoughts on whether the triple lock should be kept in place, or whether it should be scrapped.
Wage growth likely to determine increase
Wage growth is likely to be the figure used to determine the state pension increase for April 2027. Latest figures from the Office for National Statistics (ONS) shows average growth, including bonuses, fell to 4.1% in the three months to June.
In comparison, inflation is now at 2.9%. This means unless inflation rises sharply in the next three months, it is the wage growth which will be the higher figure.
If earnings growth next month is unchanged, an increase of 4.1% would add a little over £500 a year to the state pension. The full new state pension is currently worth £241.30 a week and this increase would take it to £251.20.
Wage growth was also used to determine the state pension increase for this April, with state pension payments rising by 4.8% earlier this year.
Tax implications and eligibility
The state pension is also set to rise above the tax-free allowance, which is the amount you can earn every tax year before you start to pay tax, from next year.
The full new state pension is currently worth £12,547.60 a year, while the personal allowance is £12,570. The Treasury has pledged that income tax will not be charged on people who only receive the state pension.
You get the new state pension if you're a man born on or after April 6, 1951, or if you're a woman born on or after April 6, 1953. Someone on a full basic state pension would see their weekly amount rise from £184.90 per week to around £192.50 from next April.
These are the full amounts of state pension that you can get. You may receive less than these amounts depending on your National Insurance record.
State pension age changes
The state pension age is currently set at 66 for men and women but is now gradually increasing to age 67. There are already plans in place for the state pension age to rise again to 68 between April 2044 and April 2046 but reports suggest this could be brought forward. The Government has not yet officially announced any changes to this timetable.
