#StatePension [#Inflation](<https://spainnews.co.uk/hashtag/inflation>) [#Retirement](<https://spainnews.co.uk/hashtag/retirement>) [#SocialSecurity](<https://spainnews.co.uk/hashtag/socialsecurity>) [#Economy](<https://spainnews.co.uk/hashtag/economy>)



# State pensions set for 3.5% increase in 2027

4 November 2026 at 12:46

> UK state pensions are expected to rise by over 3.5% next year following a 4.9% increase in the October Consumer Price Index.

State pensions are predicted to rise by over 3.5% in 2027, following a 4.9% increase in the October **Consumer Price Index**. The definitive figure, based on average inflation between December 2025 and November 2026, will be officially confirmed on 15 December.

A 2021 law guarantees retiree purchasing power by linking revaluations to the average **IPC**. This adjustment is vital as the '**baby boomer**' generation, totalling 14 million people, began retiring in 2023, joining the ten million pensions currently being paid out.

The revaluation is estimated to cost the **public treasury** 8,000 million euros, adding pressure to a **Social Security** debt exceeding 136,000 million euros. To manage costs, the legal retirement age is set at 67, with a 4% annual incentive for those delaying.



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