The state pension will increase by around 4.7 per cent in April 2026, taking the new state pension to £12,534 per year. But not everyone will get that huge amount.
The shake-up means the full, new state pension rise from its current level of £230.25 per week to £241.05 per week from April, while those retiring on the basic state pension will see their weekly income increase from £176.45 per week to £184.75.
The rise from £230.25 to £241.05 is a rise of £10.80 a week, or £562 a year. But old, basic state pensioners will only get £56 less each week from the Department for Work and Pensions ( DWP ).
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Under the triple lock, the State Pension typically goes up each April by the highest of average wage growth between May and July (including bonuses) – 4.8% for this year – September’s Consumer Prices Index (CPI) inflation measure – 3.8% this year OR 2.5%.
Since average wage growth is the highest of the three figures this year, the State Pension is expected to rise by the average wage growth figure of 4.8%.
One in three (36% of) state pensioners – 4.7 million – get the new State Pension. You’ll be on it if you reached State Pension age after April 2016.
You’ll need 35 qualifying years of National Insurance contributions to get the full new State Pension.
You’ll usually get a portion of the State Pension if you have at least 10 qualifying years on your National Insurance record. If you have any gaps in your National Insurance record, you may be able to make voluntary contributions to increase the amount of State Pension you receive.
The People’s Pension explained: “While you’ll receive an increase in your State Pension, it’s still unlikely to be enough for you to retire comfortably on.
“If you’ve worked for an employer or been self-employed, it’s likely that you’ve picked up additional workplace or personal pension pots along the way. If you’re able to, putting a bit more into these pensions can give your savings a boost (and you’ll earn tax relief from the government at the same time).”
