State pension triple lock under threat: Warning issued over future of policy

This means payments are guaranteed to go up in line with the highest of 2.5 per cent, the inflation figure for the previous September or the rise in average earnings.

Analysts have cast doubt over the sustainability of the pledge particularly after the inflation element was temporarily suspended two years ago, following the coronavirus lockdown which led to a distorted increase in average earnings.

But after being reinstated this April, state pensioners have received a record 10.1 percent payment surge.

However, experts claim the policy will soon need to be changed.

"Whilst an unpopular opinion, the triple lock is a daft policy," Scott Gallacher, chartered financial planner at independent financial advisers Rowley Turton told The Express.

"As shown during Covid, it creates situations where state pensions can rise considerably higher than wages or even inflation.

“And, at some point, it has to be removed or at least modified. Otherwise, if it were followed indefinitely, you'd eventually end up with a state pension higher than average earnings.

“This might be attractive but would be entirely unaffordable. If pensioners do need additional financial help, it should be targeted by needs and not simply an almost random result of market conditions."

The basic state pension currently remains at £156.20 a week while the full new state pension pays £203.85 a week.

Independent financial adviser Samuel Mather Holgate, from Mather and Murray Financial, claims the policy was not intended to last this amount of time and is “completely unsustainable”.

He said: “Downing Street have a difficult job of balancing pension income with pension age, and as income has increased the age at which you achieve this is pushed further back.

“The fairest way to distribute state pension would be means testing it, but that would not go down well with those that vote and choosing a level to taper would be crucial."

Neil Rayner, head of advice at True Potential is urging Britons to make sure they have other sources of retirement income.

He said: “Without a private pension or significant savings, people may struggle. It’s best to think of the state pension as more of a safety net, rather than a complete source of retirement income.

“Consulting with a qualified financial adviser who can provide personalised advice based on your specific circumstances is always the best step to take if you have any concerns or need to plan things out.”