Windfall for pensioners as inflation hits five year high

LTA will rise to £1,030,000

Hannah Godfrey
clock • 2 min read

UK pensioners are set to see their state pension payouts grow and lifetime allowance rise thanks to the highest inflation rate since April 2012, at 3%.

On Tuesday data from the Office for National Statistics showed inflation increased from 2.9% in August to 3% in September. This is good news for pensioners who will see their state pension grow by at least 3% thanks to the triple lock, which ensures it increases by the higher of growth in average earnings, the Consumer Price Index or 2.5%. Weekly state pension payouts will rise from £159.55 to £164.37, resulting in an annual income rise of £250, although those on the old basic state pension will only see an increase of £3.67 per week, or an annual increase of £191. Additionally, th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Defensive income before retirement: A four layered framework

Defensive income before retirement: A four layered framework

Entering decumulation can be an unsettling time for clients

Joe Simpson
clock 10 August 2026 • 4 min read
The FCA's decumulation challenge: Can UK REITs help deliver sustainable retirement income?

The FCA's decumulation challenge: Can UK REITs help deliver sustainable retirement income?

A look at the three Ss of retirement income

James Peel
clock 04 August 2026 • 7 min read
What the decumulation shift means for advice firms, and how the best are responding

What the decumulation shift means for advice firms, and how the best are responding

'Technology is part of this picture in ways that are worth being honest about'

Andy Zanelli
clock 14 July 2026 • 4 min read