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We all know the state pension goes up every April. But while the headline percentage increase grabs the news, the small print often reveals a different story for your wallet.
The ‘triple lock’ is the government’s golden rule to ensure pensioners don’t get left behind. However, not every penny of your pension is protected. Here’s the reality check on how it works and why you might not get the full amount.
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The government guarantees that the basic and new state pension will rise every April by whichever of these three numbers is highest:
1. Inflation (the CPI figure from the previous September).
2. Earnings (average wage growth from May to July the previous year).
3. 2.5% (the guaranteed minimum increase).
We usually find out the confirmed number in the autumn Budget, six months before the cash hits your account in April.
Clare Moffat, pensions and tax expert at Royal London, says that the triple lock is hugely valuable for pensioners: “It means that if there is high inflation, like there was a few years ago, or if wage rises increase, then pensioners will see that reflected in their state pension.”
The triple lock was introduced by the coalition government in its first budget after the 2010 election. It came into force in April 2011 and has been applied every year since, except for a temporary suspension in 2022/23 during the pandemic.
In recent years, it has delivered massive boosts – 10.1% in 2023 and 8.5% in 2024. While things have settled down since then, increases have still been above inflation, at 4.1% in 2025 and 4.8% for April 2026.
This is the biggest misunderstanding among retirees. You might read that the pension is going up by 4%, but then check your payments and see a smaller rise.
Why? Because the triple lock only applies to the core state pension. It does not apply to:
These elements usually only rise by CPI inflation. If earnings growth is high (driving the triple lock), but inflation is low, these parts of your pension will lag behind. Clare Moffat explains: “If you’re entitled to any additional state pension, such as SERPS or the state second pension, that only rises by inflation, as measured by the consumer price index (or CPI). For some people, the additional state pension could form a significant part of their state pension income.”
Don’t assume you will get the full pension. To get the maximum amount, you usually need 35 qualifying years of NI contributions. If you have fewer than 10 years, you usually get nothing. Clare Moffat warns: “Data we analysed from the Department for Work and Pensions showed that, in 2023, only half of UK-based pensioners entitled to get the new state pension were in receipt of the full amount.”
Check your state pension contributions on the government website. If you have gaps in your record from the last six years, you may be able to “buy” voluntary contributions to boost your weekly income for life.
If you dream of retiring to the sun, be careful. If you move to a country without a reciprocal social security agreement with the UK (such as Australia, Canada, or New Zealand), your pension is frozen at the rate it was when you left. You will never get a triple lock increase again.
Clare Moffat explains: “If you retire in the European Economic Area (EEA) or Switzerland, or to a country that has a social security agreement with the UK that allows for increases to the state pension, you’ll receive the same increase to your state pension as people living in the UK. This includes a lot of countries – the USA being one, but there are several countries where you won’t receive state pension increases in line with the UK, including Canada, New Zealand and Australia.”
If you defer claiming your pension, you get extra cash when you eventually take it. You can defer even if you’ve already started taking it.
The policy is expensive. The Institute for Fiscal Studies (IFS) projects that the triple lock could cost the taxpayer an additional £5bn to £40bn a year by 2050 compared to linking increases to earnings alone.
While the current government has committed to keeping it for this parliament, the long-term pressure on public finances means nothing is guaranteed forever. The best way to protect yourself is to maximise your pension savings and, if you can, make sure your national insurance record is complete right now.
Read more: Is the state pension heading for a crisis?
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