There is talk of the triple lock on state pensions not being sustainable in the longer term.
This could affect the guarantee on future pension pay-outs. Whether the triple lock stays or goes; your State Pension while providing a foundation is very unlikely to provide enough to enjoy the retirement you would like. Even if you’re eligible for the full State Pension of £168.60 a week for the tax year 2019-20, this can be well below what most people hope to retire on.
What is the ‘triple lock’?
Pensioners have enjoyed special protection from the triple lock, which was introduced in 2010. It is a guarantee to increase the State Pension every year by inflation, 2.5% or increase in average earnings – whichever is higher.
The idea behind it was to protect pensioners from meaningless increases in the state pension and to make sure their income was not eroded by the gradual increase in the cost of living.
Is the State Pension triple lock guaranteed?
The triple lock is remaining for now but there’s talk of it being unsustainable. The House of Lords committee on inter-generational fairness has delivered a series of recommendations, their report was published in April 2019. It calls for policies to support younger people in the employment and housing markets.Their report recommends removing the triple lock for the state pension, saying the triple lock is inherently unsustainable. This leaves the future of the UK state pension system uncertain.
How does the triple lock affect your State Pension?
The triple lock has allowed the State Pension to keep growing at a rate that allows you to purchase the same amount of goods (or more depending which of the 3 rates is the highest) as last year. But the guarantee of the triple lock may be proving too expensive and you will certainly need to save and supplement for a comfortable retirement.
If you’re coming up to or already in retirement and have a question about your pension or retirement needs, consult your adviser at the earliest opportunity, it’s never too soon
This could affect the guarantee on future pension pay-outs. Whether the triple lock stays or goes; your State Pension while providing a foundation is very unlikely to provide enough to enjoy the retirement you would like. Even if you’re eligible for the full State Pension of £168.60 a week for the tax year 2019-20, this can be well below what most people hope to retire on.
What is the ‘triple lock’?
Pensioners have enjoyed special protection from the triple lock, which was introduced in 2010. It is a guarantee to increase the State Pension every year by inflation, 2.5% or increase in average earnings – whichever is higher.
The idea behind it was to protect pensioners from meaningless increases in the state pension and to make sure their income was not eroded by the gradual increase in the cost of living.
Is the State Pension triple lock guaranteed?
The triple lock is remaining for now but there’s talk of it being unsustainable. The House of Lords committee on inter-generational fairness has delivered a series of recommendations, their report was published in April 2019. It calls for policies to support younger people in the employment and housing markets.Their report recommends removing the triple lock for the state pension, saying the triple lock is inherently unsustainable. This leaves the future of the UK state pension system uncertain.
How does the triple lock affect your State Pension?
The triple lock has allowed the State Pension to keep growing at a rate that allows you to purchase the same amount of goods (or more depending which of the 3 rates is the highest) as last year. But the guarantee of the triple lock may be proving too expensive and you will certainly need to save and supplement for a comfortable retirement.
If you’re coming up to or already in retirement and have a question about your pension or retirement needs, consult your adviser at the earliest opportunity, it’s never too soon
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