Pensioners could see the triple lock disappear as “big questions” loom over the sustainability of the scheme ahead of the Budget, experts warn.
State pension is due to rise by 10.1 per cent this April thanks to the triple lock.
Analysts have raised concerns over the long-term viability of the triple lock as Jeremy Hunt is set to deliver the Budget next month.
Experts are warning that there are 'big questions' over the future of the triple lock
Pexels
Steven Cameron, Aegon’s pensions director said: “The state pension triple lock is being honoured in April.
“This will mean a record-breaking increase of 10.1 percent to the state pension.
“Which is good news for state pensioners whose 3.1 percent increase last April fell short of inflation then.
“There’s a big question over whether the triple lock can be sustained in future years when both price inflation and earnings growth are high and subject to sharp changes.
“It won’t be until autumn that we’ll know what the triple lock formula would deliver, and the Government will then have a difficult decision to make.”
The expert added that further clarity is needed on the future of the state pension age.
“As well as uncertainty over future increases to the state pension, we’ll hear more in the new year on the future age at which people can draw their state pension,” he said.
“There is speculation this could go up to age 68 earlier than planned, possibly from the early to mid-2030s.
The triple lock scheme means state pension will increase again from April
Joe Giddens
“The state pension is a significant part of most people’s retirement income so it’s important to understand when you’ll receive it.
“So you can plan ahead to make sure you have adequate private or workplace pensions.”
The triple lock ensures that pension payments rise by the rate of inflation, average earnings or 2.5 percent; whichever is the highest.
From April, the Government’s full new state pension will go up from £185.15 weekly to £203.85 per week.
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