New State Pension rates from April 2026
From 6 April 2026, the full new State Pension increased by 4.8% under the triple lock guarantee. Here are the new weekly and annual amounts:
| Pension type | 2025/26 | 2026/27 | Increase |
|---|
| Full new State Pension |
£230.25/week |
£241.30/week |
+4.8% |
| Annual equivalent |
£11,973/year |
£12,548/year |
+£575 |
| Basic State Pension (old) |
£176.45/week |
£184.90/week |
+4.8% |
The increase was determined by the triple lock, which uprates the State Pension by the highest of average earnings growth, CPI inflation, or 2.5%. For 2026/27, earnings growth of 4.8% was the highest measure.
State Pension age rising from 66 to 67
The State Pension age began its phased increase from 66 to 67 on 6 April 2026. The change is being rolled out gradually based on date of birth:
- If you were born before 6 April 1960, your State Pension age is 66 (no change).
- If you were born between 6 April 1960 and 5 March 1961, your State Pension age increases in monthly steps from 66 to 67.
- If you were born on or after 6 March 1961, your State Pension age is 67.
You can check your exact State Pension age on the GOV.UK State Pension age calculator.
Tax-free allowances remain frozen
While the State Pension has increased, income tax thresholds remain frozen for 2026/27:
| Threshold | Amount | Change |
|---|
| Personal Allowance | £12,570 | Frozen |
| Basic rate band | £12,571 – £50,270 | Frozen |
| Higher rate band | £50,271 – £125,140 | Frozen |
| Additional rate | Above £125,140 | Frozen |
This means more of the State Pension falls within the Personal Allowance, but the gap is narrowing. At £12,548, the full new State Pension is now just £22 below the Personal Allowance. Any additional income — even modest private pension drawdown — will be taxed at the basic rate.
Other pension changes to watch
- Pension inheritance tax (April 2027): Unused pension funds and some death benefits will be included in your estate for IHT purposes. This is a significant change for anyone planning to leave pension wealth to beneficiaries.
- Cash ISA limit reduction (April 2027): The annual cash ISA allowance for under-65s drops from £20,000 to £12,000. The remaining £8,000 of the total ISA allowance must go into stocks & shares or other ISA types.
- Minimum pension access age (April 2028): The minimum age to access private pension funds rises from 55 to 57. If you're planning early retirement, factor this into your timeline.
What does this mean for your retirement income?
The State Pension increase is good news — an extra £575 per year in retirement. But with frozen tax thresholds, the benefit is partly offset by the narrowing gap between pension income and the Personal Allowance.
The key question for most people is: how much additional income can I sustainably draw from my private pension and savings? The answer depends on your pot size, retirement age, growth assumptions, and how long you need it to last.
Try the free pension calculator →