Pensioners could see purchasing power boost as state pension triple lock rise now double UK inflation rate

Pensioners could see purchasing power boost as state pension triple lock rise now double UK inflation rate

Dr Roger Gewolb reacts to inflation figures

Jessica Sheldon

By Jessica Sheldon

Published: 20/12/2023

- 10:32

Updated: 20/12/2023

- 10:55

The state pension will increase via the earnings element of the triple lock in April 2024

The state pension triple lock increase is now more than twice the current UK rate of inflation, figures published today show.

Pensioners will get an 8.5 per cent uplift to their state pension from April 2024, while inflation in the year to November came in at 3.9 per cent.

While the inflation figure used in the triple lock is typically the year-to-September figure, an expert has suggested it could mean pensioners see a boost in their purchasing power.

Steven Cameron, Pensions Director at Aegon said: “The Government previously confirmed it will honour the state pension triple lock next April which means an increase of 8.5 per cent based on earnings growth.

Pensioners look at receipts

Pensioners could see a boost to purchasing power of the state pension


"If inflation remains at 3.9 per cent until then, state pensioners will receive an increase of more than double this amount, which could boost their purchasing power by over four per cent after inflation."

Mr Cameron said "as always", the "big" question is whether the triple lock is sustainable in the long term.

He added: "The state pension is very costly to fund but is a lifeline to millions.

"We urge all political parties to make their intentions clear ahead of the next General Election. It could have a big influence over voting preferences.”

The IFS suggested a new way forward for the state pension last week, proposing a new four-point plan.

The IFS Pensions Review suggested the Government should state what it believes to be an appropriate level for the new state pension relative to average earnings.

It was then suggested the state pension should be linked to earnings, but continue to increase at least in line with inflation every year.

Under the four-point guarantee, the state pension would not be means-tested, and state pension age would only rise as longevity at older ages increases.

WATCH NOW: IFS Director Paul Johnson on future of state pension triple lock

However, the IFS said the state pension age should never rise by the full amount of that longevity increase.

To increase confidence and understanding, the authors of the report said the Government should write to people around their 50th birthday stating what their state pension age is expected to be.

Their state pension age would then be fully guaranteed 10 years before they reach it, giving them time to prepare for any changes.

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