The state pension is set to rise by £460 annually from April. The increase is part of the 'triple lock' system that ensures pension growth by the highest of 2.5%, inflation, or average earnings. Meanwhile, over nine million pensioners will face winter fuel payment cuts due to new means-testing.
The new full state pension is projected to rise by £460 annually starting April, according to recent wage data.
Under the 'triple lock' system, the state pension increases by whichever is highest among 2.5%, inflation, or average earnings growth.
Almost 12 million people receive the state pension currently.
For those who reached pension age post-April 2016, the weekly full new flat-rate state pension is expected to be £230.05, totaling £11,962.60 annually.
For those who retired before April 2016, the old basic state pension will likely increase to £176.30 per week, or £9,167.60 per year.
This rise comes as over nine million pensioners face cuts in the winter fuel payment due to new means-testing introduced by Chancellor Rachel Reeves.
The final pension increase will be confirmed by Work and Pensions Secretary Liz Kendall around the Budget time, depending on possible revisions in official earnings figures.
While some may benefit from the pension increase, others could face real-terms losses when factoring in inflation and reduced fuel payments.