Average earnings growth (including bonuses) was 3.9% for May-July.
This is a key figure in the triple lock formula alongside 2.5% and September’s inflation figure (published in October).
Current inflation is 2.9% making it likely that wages will be the key figure used.
The state pension is the foundation of retirement income but will only cover the essentials. Making the most of your pension is key to living a good life in retirement.
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.”
Notes to Editors
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