Triple Lock Pension Protection – Will It Be Ditched?

With a General Election coming in June, the issue of the “triple lock” protection on state pensions is becoming an issue again, and the pros and cons are being debated fiercely. Today, research by experts at Hymans Robertson suggests that ending the triple lock will only save money in the short term, because so many of us are not saving enough for a comfortable retirement.

The Daily Express reports

“The triple-lock system means the state pensions rise at the rate of inflation, wage growth or 2.5 per cent, whichever is highest… But because millions of workers are still not saving enough for their old age, experts say the shortfall will have to be plugged by the taxpayer and will be greater than any costs of the current scheme… The 2.5 per cent underpin was added to the existing double-lock policy of earnings and inflation seven years ago… Chris Noon of Hymans Robertson, said: “The motivation to remove the triple lock and return to the former policy of double lock would be based on short-term cashflow considerations rather than sensible policy decision-making… It will come with big political risks, but more importantly the cost savings to any Government will be insignificant in the context of the pressure building on the state pension due to huge savings shortfalls.”