Nearly 450,000 elderly individuals in the UK are expected to miss out on the upcoming increase in the state pension next year. The state pension is set to rise by 4.7% in April, following the triple lock guarantee that ensures an annual increase based on the highest value among inflation, wage growth, or 2.5%.
Recent data from the Office for National Statistics confirmed a 4.7% growth in average wages, while inflation stands at 3.8%. Consequently, it is likely that the state pension will increase in line with wage growth.
Unfortunately, around 453,000 expatriate state pensioners residing in countries without a reciprocal agreement, such as Australia, New Zealand, and Canada, will not benefit from the pension rise.
Individuals with frozen state pensions will continue to receive the same rate unless they return to live in the UK. Those residing in the European Economic Area (EEA), Switzerland, or countries with a social security agreement with the UK, excluding Canada and New Zealand, can expect yearly state pension increases.
If the 4.7% increase is finalized, the full new state pension will rise from £230.25 to £241.05 per week in April 2026, equating to an annual increase of over £560. The old basic state pension will also see an increase from £176.45 to £184.75 per week.
To qualify for the full state pension, most individuals need 35 years of National Insurance contributions, with a minimum of ten years required for any payment. State pensions are administered by the Department for Work and Pensions (DWP).