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 projected to rise by 4.7% in April, following the triple lock pledge, which ensures that the pension increases annually by the highest percentage among inflation, wage growth, or 2.5%.
The Office for National Statistics confirmed this week that average wage growth stands at 4.7%, surpassing the current inflation rate of 3.8%. Consequently, it is likely that the state pension will increase in line with the wage growth rate.
Unfortunately, approximately 453,000 expatriate state pensioners residing in certain countries like Australia, New Zealand, and Canada will not benefit from the pension increase due to the absence of a reciprocal agreement to uplift state pensions in those nations.
Individuals whose state pension is frozen will maintain their initial pension rate upon emigration. However, if they return to live in the UK, their pension will be adjusted to the current rate. State pension increases will only apply to those living in the European Economic Area (EEA) or countries with a social security agreement with the UK, excluding Canada and New Zealand.
If the 4.7% increase is confirmed, the full new state pension will rise from £230.25 per week (£11,973 annually) to £241.05 per week (£12,534.60 annually) in April 2026, representing an annual increment of over £560. Meanwhile, the old basic state pension will increase from £176.45 weekly (£9,175.40 yearly) to £184.75 weekly (£9,607 annually).
To receive the full new state pension, most individuals need 35 qualifying years on their National Insurance record, with a minimum requirement of ten years to qualify for any amount. The Department for Work and Pensions (DWP) is responsible for the payment of state pensions.