Pension increases: the 2025-2026 timetable you need to know

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# Pension Increases: The 2025–2026 Timetable You Need to Know

For millions of retirees and people approaching retirement, pension increases are not just an annual headline — they are a lifeline. With everyday costs such as food, energy, housing, and healthcare continuing to fluctuate, knowing **when your pension will increase, how much it may rise, and what rules determine those changes** is crucial for financial planning.

The 2025–2026 period is especially important. Inflation trends, government policy decisions, and economic pressures are all shaping how pensions are adjusted. Whether you already receive a pension or are planning ahead, understanding the timetable can help you budget more confidently and avoid surprises.

This guide explains **what pension increases are**, **how they are calculated**, and **the key dates you need to know for 2025–2026**.

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## Why Pension Increases Exist

Pension increases, often referred to as *indexation*, are designed to protect retirees from the rising cost of living. Without regular adjustments, a pension’s purchasing power would steadily decline over time.

Most pension systems increase payments based on one or more of the following:

* Inflation (cost-of-living measures)
* Average wage growth
* Statutory minimum guarantees
* Fixed formulas set by law

The goal is simple: ensure pension income keeps pace — at least partially — with real-world expenses.

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## Understanding the 2025–2026 Pension Year
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