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The ‘triple lock’ on state pensions has protected the older generation’s income since 2010, guaranteeing that pensions will rise each year in line with the highest of either the average earnings, the consumer price index, or 2.5%. But the triple lock’s days look increasingly numbered, with an increasing number of financial and political figures calling for it to be scrapped.

Back in November 2016, the Work and Pensions Committee criticised the triple lock, describing it as both “unfair” on the younger generation and “unsustainable” in the long term and calling for the new state pension and basic state pension to be linked to average earnings alone. They also proposed the development of a formula to protect pensioners during periods where earnings are lower than price inflation.

More recently, former pensions minister Ros Altmann has denounced the triple lock on her blog as “a lazy way of claiming to offer pensioners brilliant protection” which is “increasingly unfair”. She goes on to explain: “If the new state pension (designed to always be above pension credit level) remains triple locked, while pension credit only increases with earnings, then the poorest and oldest pensioners will become relatively poorer”.

Responses to the review of the state pension by former chief of the Confederation of British Industry John Cridland have also seen calls for the triple lock to be dropped. A number of respondents called for the Cridland Review to make major changes to the state pension system, including a move away from the triple lock and towards indexation in line with earnings.

In his Autumn Statement last year, the chancellor Philip Hammond indicated that the triple lock would remain in place until at least 2020, when the next general election is expected to take place. If the pressure continues to mount against it, many feel the government may be forced to remove the triple lock much earlier, with some predicting its demise before the end of 2017. Labour have recently come out in support of the triple lock, however, pledging to keep it in place until at least 2025, making the future of the mechanism even more difficult to predict

Whatever the outcome of any review, and by association the level of State Pension payments in the future, it remains important that people know how much state pension they are likely to receive, when this can be paid from, and how these may impact on their retirement plans and expected retirement income. Including the level of State Pension is a key part of any projections run by Creative’s consultants when looking at retirement income and planning, along with the level of existing ‘private’ savings through employer or personal pension schemes.

If you feel that your staff are not sufficiently aware of the State Pension benefits, including the level of such payments, when and what pressures exist that may change this in the future, then we are able to run Education Presentations for groups of employees, and individual advice or guidance sessions to help empower employees to make educated decisions about their personal situations. Further details on our offerings can be provided by your Creative consultant, or email us at and we will contact you to discuss our proposition and options.


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