The ONS has published the latest labour market data: UK Labour Market: September 2026 - GOV.UK
Helen Morrissey, head of retirement analysis, Hargreaves Lansdown: “Pensioners stand to be almost £490 better off next year as today’s earnings figures have a huge impact on next year’s state pension. The data, alongside September’s inflation figure and 2.5%, is a key component of the triple lock formula used to increase state pensions. With CPI inflation currently sitting at 2.9% it seems increasingly likely that today’s 3.9% increase in average earnings will be the figure used. This would put someone on the full new state pension on course to receive £250.70 per week from next April – up from the current £241.30 per week. Someone on a full basic state pension would receive £192.10 per week – up from £184.90. This will be a welcome boost to pensioner incomes but remember that the state pension is the foundation of your income and will only cover the essentials. HL’s Savings and Resilience Barometer shows only 43% of households are on track for an adequate retirement – the state pension will get you some of the way, but not all of it. If you want more from your retirement, you need to take your pension planning into your own hands. Taking advantage of tools such as online calculators lets you see how much you are on track to have and how much income that is likely to give you when you retire. If you have a gap between what you have and what you need then taking small actions, such as boosting contributions every time you get a pay increase or promotion could have a big impact over time. If your employer is willing to increase their contribution if you increase yours – known as the employer match – then this can also make a big difference. This steady drip feed of contributions invested over the long term can transform your retirement.”
David Brooks, Head of Policy at Broadstone, commented: “The earnings growth data looks set to provide another big boost to the State Pension from next year, delivering a welcome financial uplift to retirees as we head towards a challenging winter. The full new State Pension now exceeds the Personal Allowance, a landmark that will inevitably draw further attention to the impact of frozen tax thresholds and the substantial increases we have seen in the State Pension over recent years. The increase will sharpen the question of whether the triple lock remains affordable over the long term given the UK’s precarious public finances. It is important not to throw the baby out with the bathwater as protecting pensioner living standards remains vital, but the system also has to be fair and financially sustainable across generations. Transitioning to a double lock that protects increases in line with working-age benefits would seem the most likely compromise given it is today’s workers who ultimately fund the State Pension.”
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