State pension to rise by nearly £500 annually from April

Summarised from 2 outlets · 3 reports · Updated 21 Oct, 07:20 · Archive

The full new state pension will increase by close to £500 a year from April 2027 under the triple lock policy.

The full new state pension will increase by nearly £500 a year from April 2027, taking the annual payment to approximately £13,036. Under the triple lock policy, the state pension rises every April by whichever is highest: the previous September's inflation figure, average earnings growth in May to July of the previous year, or 2.5 per cent. The relevant earnings growth figure of 3.9 per cent is higher than September's inflation at 3.5 per cent, so this will determine the rise.

The increase will take annual state pension payments above the £12,570 income tax threshold for the first time. This means millions of retirees who rely solely on the state pension could face paying income tax, despite the policy being designed to protect retirees from losing purchasing power as the cost of living changes.

How it is being reported

• State pension to rise by £489 in triple lock boostState pensions will rise by almost £500 next year, according to the release of new figures.Daily Express · 21 Oct, 07:24
• Full state pension confirmed to rise by nearly £500 a year from AprilThe increase will push those relying solely on the state pension above the income tax threshold for the first timeThe i Paper · 21 Oct, 07:04
• State pension 'to rise almost £500 annually' - but you could be hit with taxesThe inflation figure for September will be published later today .Daily Express · 21 Oct, 06:09

In this story: Office for National Statistics · UK

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