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Daily Express - State pension age and triple lock

ended 23. March 2023

Reports suggest the state pension age will not accelerate as fast as planned as a way to keep votes for the Government. However, with the triple lock also maintained, the SP is likely to get expensive. 

Daily Express journalist is looking for an expert to comment on whether this approach has longevity, or whether, at some point, something has to give.

4 responses from the Newspage community

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Editor
Scott Gallacher
Director at Rowley Turton
The current approach to state pensions of maintaining the triple lock while slowing down the state pension age may be short-sighted and costly in the long run. While it may be difficult for a government to completely remove the triple lock, at some point the economics of the situation cannot be ignored, and tough choices will have to be made. For those in their fifties and younger, relying solely on the state pension may not be wise, and they should make their own pension provision to ensure financial security in retirement.
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Kevin Bailey
Managing Director at Wessex Investment Management
No Government can ignore the facts. We have an increasingly ageing population and reducing birth rate (ONS has suggested that the rate has fallen by 17% over 10 years from 1.94 to 1.61 to December 2022). Thus numbers paying tax into the system to support those taking benefits in the form of a state pension will reduce. One of four things will happen: state pension age will in time revert to 70 (as it was when launched in 1909), tax rates will increase significantly to cover the cost of provision, the amount paid will reduce to remain affordable or there will be a combination of one or more of these factors.
The triple lock is a way of ensuring those that are reliant upon the state pension as their main source of income in retirement receive the support they need BUT it comes at a significant cost when inflation is running high. It is though, those in retirement who will continue to have the biggest say on what happens next as they determine who is elected to Government.
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Luke Thompson
Director at PAB Wealth Management
The government not looking to increase the state pension age is yet more evidence of short-term political gain whilst putting at risk the good of the country over the longer term. The State Pension triple lock is incredibly expensive to maintain and something is going to have to give at some point to ensure the state can continue to pay a State Pension.

The options are either the removal of the triple lock or increasing the state retirement age. Using the State Pension as a political football is definitely not the answer what the country needs is clear and joined up thinking in this area.
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Joshua Gerstler
Chartered Financial Planner at The Orchard Practice
"The State Pension is not sustainable with the current increases built into it. The generous changes to the pension allowances in the recent budget look like the first steps in ensuring people do not rely on the government for their pension in old age."