State pensioners could be in line for a significant financial boost in 2026, with payments potentially increasing by up to £715 per year.
Following last month's 4.1 per cent rise under the triple lock policy, experts are now suggesting next year's increase could reach around six per cent.
This would represent a substantial uplift for those receiving the full new state pension.
The triple lock ensures state pensions rise by the highest of average earnings growth, inflation, or a minimum of 2.5 per cent.
Aaron Peake, personal finance expert at CredAbility, explained: "Right now, earnings growth is slightly ahead of inflation, so that's the frontrunner for determining the rise in 2026.
"If we take current wage growth figures of around six per cent, that's the ballpark for next year's state pension increase."
The triple lock ensures state pensions rise by the highest of average earnings growth, inflation, or a minimum of 2.5 per cent
GETTYA six per cent rise would see the full new state pension increase from the current £230.25 per week to £244 per week, amounting to an extra £715 annually.
Meanwhile, those on the full basic state pension would see their weekly payments rise from £176.45 to £187, resulting in an additional £548.60 per year.
However, Peake cautioned that it's still "early days" in determining whether inflation or earnings will be the deciding factor for next year's increase.
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The DWP encourages all ESA recipients to respond promptly to migration notices to ensure continuous financial supportGETTYThe triple lock calculation will use earnings figures from May to July, while the inflation figure is based on the year to September.
Despite this uncertainty, Peake suggested that next year's rise could well exceed the 4.1 per cent increase pensioners received in April.
While Peake welcomed the potential boost, he warned it "won't necessarily stretch as far as people hope. Many essentials are still more expensive than they were two or three years ago".
The increase would provide some relief for pensioners who have faced rising costs across essential items in recent years, though it may not fully offset the impact of the higher prices that have become established in the economy.
Peake encouraged pensioners to get on top of their finances by setting up a monthly budget and identifying areas where spending could be reduced.
For those looking to build up savings, he suggested: "A high-interest easy access savings account could be a good option, especially if rates remain fairly high.
"These accounts let you dip in and out if needed, which suits people on a fixed income."
Pensioners are urged to check their eligibility for additional benefits they might be missing out o
GETTY IMAGESFor those who don't need immediate access to their savings, Peake highlighted another option: "Fixed-rate bonds usually offer better returns, and they give you peace of mind knowing your money is locked away and earning interest."
He also urged pensioners to check their eligibility for additional benefits they might be missing out on, such as Pension Credit, which is worth an average of £3,900 per year to claimants.
