The full new state pension will exceed £220 a week for the first time ever from April but experts are warning the triple lock is up for “debate”.
Concerns have been raised over the cost of future retirement payments on the taxpayer with policymakers being urged to review funding.
The triple lock is a pledge to raise pensions by either the rate of inflation, average earnings or 2.5 per cent; whichever is higher.
Earlier this year, the Government confirmed that the state pension would rise by 8.5 per cent in line with average earnings.
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State pension triple lock needs to be up for "debate", experts claim
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The Office for Budget Responsibility’s (OBR) forecasts as part of the Spring Budget show the costs of the state pension and retirement benefits will hit £171.8billion by the 2028/29 tax year.
This represents an increase from 36 per cent from the £126.1billion reported for 2022/23, the OBR reports.
As such, experts are calling for policymakers to consider what funding for the state pension will look like in the years to come.
Nick Flynn, the director of Retirement Income at Canada Life, argued that the country is in need of a “proper debate” to address funding concerns.
He explained: “Looking ahead, with the cost of state pensions increasing through the triple lock formula and in the context of the UK balance sheet, we need a proper debate on the future of the state pension due to the anticipated changes in our population.
“Improvements in life expectancy have slowed, and in many areas of the country gone into reverse.
“The ratio of state pension claimants to workers is expected to change significantly, and if we see this shift in the ratio of workers to retirees this will clearly have significant implications around any debate on the future funding of the state pension.”
As part of the triple lock, the full new state pension will rise by £17.35 a week to £221.20 which equates to around £11,500 annually.
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GETTYOther retirement benefits, such as Pension Credit and Attendance Allowance, will also be awarded a 8.5 per cent rate hike.
Furthermore, means-tested benefits from the Department for Work and Pensions (DWP) will get a 6.7 per cent increase.
Going into the yet-to-be announced General Election, Labour have reportedly pledged to keep the triple lock while the Conservatives has reiterated their commitment to the payment rise.
The state pension triple lock payment rise will be implemented in April 2024.