A part of pensioners can get a shocking update by the start of 2026. According to some of the latest media reports, older state pensioners across the UK are set to get £2,933 less in State Pension payments per year in 2026 compared to younger retirees. The amount of pension in the United States depends on the triple lock system.
What is a triple lock system and how does it work?
The government of the UK mostly tend to increase the State pension rates during the month of April. The amount is determined on the triple lock system, which means — the consumer price index (CPI) measure of inflation (measured for September in the previous year), average wage growth between May and July of the previous year, or 2.5%. This parameter will decide how much pension a senior citizen will get. After Office for National Statistics (ONS) figures were released this week, pensioners are on course for a 4.8% rise in the State Pension from April 2026.
But now here is the twist. The figures showed that CPI inflation for September was 3.8%, which is lower than by one percent. In that case, what will be the growth in pension according to new equation? Will it pensioners receive a lower amount of pension? If the rate of increase is fixed on 4.8%, then people getting the full new State Pension are set to receive £241.30 per week, which amounts to an estimated £12,548 per year. But for the older pensioners, the amount is much lower. They will only get £184.90 per week by comparison. In comparison annually, the gap between new and old pensioners is £2,933.20.
Who will get how much pension
Men born before April 6, 1951, and women born before April 6, 1953, receive the basic State Pension, but anyone born after these dates can get the new State Pension instead, which is paid at a higher rate.
According to the chief finance officer at Shepherds Friendly, Derence Lee, “Whilst the Triple Lock has been helpful in ensuring retirees’ incomes keep up with the cost of living, taxing pensioners could have significant financial implications, particularly for those who rely heavily on their pensions to cover essential living costs and make ends meet.”