The Department for Work and Pensions (DWP) state pension triple lock "cannot exist forever," retirees have been told. The triple lock increases payments each April for retirees born before 1960.
Mixed Public Opinion on Triple Lock
According to fresh research from investment platform AJ Bell, 38% of Britons believe the triple lock guarantee should become a permanent fixture of the pension system. In contrast, 6% of those surveyed want the policy abolished entirely.
Tom Selby, director of public policy at AJ Bell, stated: "The starting point needs to be setting out what the triple-lock is aiming to achieve and establishing a path to reach that goal. At that point, the promise can be shifted to either a single or double-lock to earnings and/or inflation."
Generational Divide
The research highlights a stark generational divide. 68% of Baby Boomers want the guarantee made permanent, compared with just 14% of Generation Z adults aged 18 to 29 and 22% of Millennials aged 30 to 45.
Mr Selby added: "In order to set a path for the triple-lock to eventually be retired, this trade-off needs to be clearly explained to the electorate. But that first step of acknowledging the triple-lock simply cannot exist forever may be the hardest."
Understanding the Triple Lock
The triple lock is a government commitment to uprate the basic and new State Pension every year by the highest of earnings growth, inflation, or 2.5%. Since April 2016, there have been two State Pension systems in the UK.
- New State Pension: Paid for those reaching State Pension age from 6 April 2016.
- Old State Pension: For those who reached State Pension age before 6 April 2016, consisting of the basic State Pension (based on National Insurance contributions) and the additional State Pension (partly earnings-related).
There is a statutory requirement to uprate both the basic and new State Pension every year at least in line with earnings, but the triple lock commitment goes beyond this. Different uprating arrangements apply to other parts of the State Pension.
