State Pension Triple Lock

State Pension Triple Lock – A guarantee that might not be!

Introduced in 2010 the Triple lock guaranteed to increase the State Pension each year by the higher of:-

  • Inflation
  • Average earnings
  • Minimum of 2.5%

It seems now though that this might be unsustainable due to the expense of providing this guarantee. It’s currently a political football.

To our minds it was a pretty generous guarantee in the first place.  Better than most final salary schemes. It was perhaps a bit of political positioning during the coalition years.

It does, of course, highlight that nothing is guaranteed. Recently, nothing in the world of pensions has stayed the same for very long, which we find frustrating!

Taking ownership, understanding the issues and planning for the future seems to be the best course of action.  You can’t rely on anyone else!