Older state pensioners are set to receive a triple lock increase to their income, but the cash rise will be lower than the increase given to new, post-2016 state pensioners. The triple lock raises state pension payments by one of three metrics: wage growth, inflation, or a flat 2.5%, whichever is highest.
New Prime Minister Andy Burnham has already committed to keeping the triple lock, despite concerns about its long-term affordability.
4.1% increase expected
Consumer Price Index figures for April to June 2026 dictate the next triple lock. If the figures remain the same next month, the increase would be 4.1% for pensioners per year. However, these are not the final figures, which will be used to calculate the triple lock wage growth element, taken from the May to July figures, set to be released in September.
Currently, the full new post-2016 state pension is set at £12,547.60 per year, so a 4.1% increase would add £514.45 per year, taking weekly payments from £241.30 to about £251.20, for someone with a full National Insurance record.
Older pensioners see smaller rise
For older state pensioners, the increase would be the same 4.1% rise, but on a smaller starting amount, as the older state pension pays a smaller total, currently £184.90 per week. However, older state pensioners can also get now-defunct schemes such as the Second State Pension or SERPs, which younger state pensioners can't access.
Someone on a full basic state pension would see their weekly amount rise from £184.90 to around £192.50 from next April, based on the same 4.1% increase, for someone with a full National Insurance record.
The absolute minimum rise possible is £313.69 for a new state pensioner, and £240 for a basic older state pensioner, as this is the minimum floor 2.5% for an increase.
Expert warns of retirement shortfall
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Average wage growth plus bonuses stood at 4.1 per cent between April-June. This could prove to be an interesting figure for state pensioners as next month’s data is a key part of the formula for the state pension triple lock.”
Ms Morrissey stressed that even these amounts will not be enough in retirement, and to boost your workplace pension. She continued: "While an inflation-busting increase will be good news for pensioners, the fact remains that the state pension on its own does little more than cover the essentials. If you want more from your retirement, then you need to make the most of your workplace and personal pensions."
She added: "Auto-enrolment has done a great job in recent years in getting more people saving into a pension. However, for many, saving at auto-enrolment minimums will not enable them to maintain their lifestyle in retirement. To prevent a nasty shock, it pays to consider what you want your retirement to look like and then you can calculate how much it might cost."
Ms Morrissey advised using online tools from pension providers, such as calculators, to model the impact of increasing contributions. She noted that small steps, such as increasing contributions with each pay rise, can make a huge difference, as can making the most of employer contributions.
