Politicians must end Triple Lock uncertainty

There has been a clamour of calls from the financial services sector this week for politicians to end the continuing uncertainty over the future of the state pension Triple Lock. The debate has come back to the fore against the background of discussions at the Tory Party conference in Manchester. A bumper increase for pensioners in 2023, and the prospect of another for 2024, have led to some people raising questions about when and whether the Triple Lock should stop and what will replace it. Jamie Jenkins, director of policy and communications at Royal London, said: "The Government has yet to confirm whether the triple lock will apply this year, and neither of the two main parties has committed to its longer-term application." He said it’s time for a proper debate about what level of state pension is fair and affordable, and what will replace the Triple Lock once that level is achieved. Meanwhile Aegon has published a report entitled The Second 50 – navigating the multi-stage life which found that 96% of workers in the UK expect to rely on the state pension to some extent in retirement. Steven Cameron, pensions director at Aegon UK, said that as election manifesto commitments are being formed, we need a focus on a long-term sustainable solution which is fair and which can be relied upon across generations. He said: "The ongoing uncertainly over the state pension triple lock isn’t helpful for any of us trying to plan our future. We believe retaining some commitment to both price and earnings inflation alongside a minimum guarantee - but looking over a three-year period rather than the highest year-on-year – offers a potential way forward." Committing to the state pension triple lock has topped a list of pension policies or reforms that UK adults are most in favour of, new research by at-retirement adviser My Pension Expert has revealed. Lily Megson, policy director at My Pension Expert, said: “As a general election comes onto the horizon, now is the time for clearer long-term strategies for pension policy. Governments need to look to the future and begin working with regulators and the private sector to develop meaningful policies that provide ongoing support for pension planners, whether that is through better education and access to financial advice, or fast-tracking the long-awaited pension dashboard and fully committing to the triple lock.” • Aegon’s research was conducted by H/Advisors Cicero in July 2023. Total sample size was 900 adult workers and 100 retirees in the UK, all aged over 18. This sample was matched to the sample design of the previous 11 years of Aegon research (Aegon Retirement Readiness Survey). • My Pension Expert’s research was carried out between 25th and 31st July 2023 among 2,000 UK adults via an online survey by independent market research agency Opinium.

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