UK State Pension Expected to Rise 4.7% in 2026

The UK state pension is expected to increase by 4.7% in 2026, potentially adding over £500 annually for recipients, based on recent wage growth data. This rise is driven by the 'triple lock' system, which raises pensions by the highest of wages, inflation, or 2.5%, with wage growth currently outpacing inflation. The new flat-rate state pension for those reaching retirement age after April 2016 is forecast to reach £241.05 per week, totaling £12,534.60 per year, while the old basic state pension is set to rise to £184.75 per week, or £9,607 annually. Nearly 13 million people currently receive state pensions, and this increase marks a significant boost amid robust average wage growth. Meanwhile, in Australia, Centrelink payments, including the aged pension, will also rise soon to keep pace with inflation, with automatic increases applying to over 5 million recipients. However, changes to deeming rates for income tests may reduce payments for some part-rate pensioners.