The most recent average wage figures are hugely important for pensioners.
They’re one of the key datapoints used in the triple lock formula that’s used to increase state pension. The triple lock seeks to uprate state pension by the highest of three measures – 2.5%, average wages including bonuses for the period between May-July and then the September inflation figure.
This article isn’t personal advice. Remember, pension and tax rules can change, and benefits depend on circumstances. If you’re not sure whether an action is right for you, ask for advice.
What could the State Pension rise be under the triple lock?
According to the ONS, average wage growth stood at 3.9%. We may have just over a month to wait until the relevant inflation figure is published, but it currently stands at 2.9%, so unless there’s a real surge it seems likely that the average wage figure will be used.
Such an increase would put someone on the full new state pension on course to receive £250.70 a week from next April – up from the current £241.30 per week. Someone on a full basic state pension would receive £192.10 a week – up from £184.90.
This will be a welcome boost to pensioner incomes but even a full state pension is only ever going to cover the basics. If you want to live well in retirement, then you will need to take your pension planning into your own hands.
Why the State Pension alone might not be enough
HL’s September 2025 Savings and Resilience Barometer shows that 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. You don’t want any nasty surprises where you find that you can’t maintain the lifestyle you hoped for in retirement because you haven’t contributed enough.
Taking the time to check in with your pension can really make a difference.
Different people want different things from their retirement, and this will affect how much you need to save. It’s useful to think about what you want your retirement to look like, as this will give you an idea of how much it is likely to cost. You can then put a plan in place to get you there.
Using tools like online calculators let you see how much you’re on track to have and how much income that is likely to give you when you retire.
Simple ways to boost your retirement income
If you have a gap between what you have and what you need, then taking small actions, like boosting contributions every time you get a pay increase or a promotion could have a big impact over time.
Your employer might also be willing to increase their contribution if you increase yours – known as the employer match – and this can also make a big difference. This steady drip feed of contributions invested over the long term can transform your retirement.
If you’re worried that you’ve neglected your pension, then it’s important to say that it’s never too late to make a difference to your retirement.
Take stock of what you have, and if you have any extra money to contribute, it can still make a huge difference. You can usually access money in a pension from age 55 (rising to 57 in 2028).
It’s also well worth checking to see that you haven’t lost track of an old workplace pension at any point over the last few years. That small pension from the job you had 20 years ago could have grown a lot and could transform your retirement.
If you think that you may have lost track of one, then contact the government’s Pension Tracing Helpline. All you need is the name of either the employer or the pension provider.
The helpline can’t tell you if you do have a pension, but they can give you contact details so you can find out. It could be a quick job that has a lasting effect on your retirement.
Depending on your needs and the kind of pension you have, it could make sense to consolidate and transfer your pension pots to one easy-to-manage account, like a Self-Invested Personal Pension (SIPP). If you are thinking about transferring, check that you won't lose valuable guarantees or benefits or have to pay excessive exit fees.
Our award-winning SIPP has a lot to offer if you want more control and choice.