There is some good news regarding the State Pension increase April 2026. From 6 April, pensioners are set for a boost to their funds to the tune of roughly £575 per year.
This is welcome, but probably not enough if you are already struggling to manage on a pension, and certainly not enough to provide the kind of lifestyle most of us are looking for in retirement.
All thanks to average earnings
The rise comes courtesy of the triple lock. This is the government commitment to raise the value of the state pension every tax year by the highest out of either the previous September’s inflation, average wage growth, or 2.5%.
This year, the boost is driven by average wage growth of 4.8%, which outpaced inflation. While this is lower than the record 10.1% leap seen a few years ago, it still brings the full New State Pension up to £241.30 a week.
Why the State Pension increase April 2026 might not be enough
But the projected increase will not mean that pensioners suddenly become a lot better off. The increases are often lagging behind the large price rises which everybody, not just pensioners, are having to deal with.
What’s more, the continuous rise in the state pension is pulling more people into the tax bracket. Because the Personal Allowance remains frozen at £12,570, this new pension increase leaves many retirees just a few pounds away from paying income tax on their very first penny of private savings.
How much do you actually need?
The Pensions and Lifetime Savings Association (PLSA) has calculated that a single pensioner now requires £31,700 a year of income to maintain a moderate living standard. Currently, the full State Pension provides just over £12,500, meaning the gap you need to bridge is wider than ever.
You need to find another £19,200 per year, and more than that if you live in rented accommodation. Having an adequate pension pot built up with an employer’s pension scheme or with a private pension plan is going to be essential for you.
Remember, if you retire at state pension age—which begins its rise to 67 this April—you could easily have another 20 years of living to fund. Factor in the likely rising costs of living and the potentially very high costs of care, and the need for a substantial pot of pension savings becomes all the more obvious.
Some more good news
Fortunately, building up the kind of pension pot that you want could be much easier than you might think.
There are a number of strategies you can use. Increasing your payments to an employer’s scheme through salary sacrifice can boost your pension considerably – and even more so if your employer agrees to match your contributions (salary sacrifice should be considered carefully as it may affect your level of borrowing when applying for a mortgage).
It can also be simple – and very rewarding – to set up a private pension plan if you have not already done so.
At Continuum we can help with your pension planning. We can start by looking at your current pension position and producing an illustration of the kind of pension and retirement income you could be looking at. Then, we can look at way to help your pension pot grow faster, and at ways to use if more effectively.
So for the good news you want to hear about your pension, call us at Continuum today.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable retirement strategy, you should seek independent financial advice before embarking on any course of action.
The value of investments can fall as well as rise and you may get back less than you invested.
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Pension income could also be affected by interest rates at the time benefits are taken.
The tax treatment of pensions in general and tax implications of pension withdrawals will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future.
Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits.
Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.
State pension news: Triple lock will HAVE to be scrapped – ‘Can’t afford it!’ (msn.com)
https://secretldn.com/state-pension-uk-triple-lock-change-april-2026/
Retirement planning
Whether you are still building your pension or approaching retirement, find out how Continuum helps you navigate every stage of retirement planning.
See how we can help
