State pension: Older Britons ‘in limbo’ as future of triple lock-hiked payment uncertain | Personal Finance | Finance

Experts are calling for more clarification over whether the state pension age and triple lock will continue to exist in the way it does today. This follows Chancellor Jeremy Hunt’s Budget announcement yesterday which outlined various alterations to pension allowances.

During his Spring Budget speech, Mr Hunt failed to confirm any major changes which will directly apply to the state pension.

Instead, much of the focus of his statement came from his promise to abolish the pension lifetime allowance, as well as raise the annual allowance and MPAA.

This is despite a Government promise that a review of the state pension would take place and be shared sometime in early 2023.

Specifically, analysts are wanting more clarity over the triple lock’s future due to the increasing expense of keeping it as is.

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The triple lock is a pledge to raise state pension payments by either 2.5 percent, inflation or average earnings.

It was temporarily suspended last year due to wages being artificially inflated as a result of the Covid-era furlough scheme.

However, the triple lock is being reapplied this year with state pension payments to receive a rate boost of 10.1 percent.

This is in line with the CPI inflation rate for September 2022 but experts are concerned that similar rate hikes may not be financially sustainable going forward.


Steven Cameron, the pensions director at Aegon, shared why changes to the state pension age may be an option for the Government in a bid to save money.

He explained: “With no mention in his Budget statement around state pension age, millions remain in limbo regarding future Government plans over what their state pension age might be.

“In his November Budget, the Chancellor announced the outcome of a review of the state pension age would be shared early in 2023.

“There is speculation that on affordability grounds this could be increased to 68 earlier than currently planned, especially after retaining the triple lock this April comes at a high cost.”

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The retirement expert shared speculation as to what the potential changes to the pension age may end up looking like.

Mr Cameron added: “Rather than the increase happening around 2038, it might be brought forward to say 2035, affecting those currently aged 52 to 55.

“People really do need to have certainty over their state pension age at least 10 years in advance to allow them to plan ahead.

“For many, the state pension and when it comes into payment is significant to their retirement plans.”

The latest CPI inflation figure for January 2023 came to 10.1 percent which is the same rate being used as the metric for raising state pension payments.

While still extremely high, this is the third consecutive month to show a drop in the rate of CPI inflation.

During his Budget speech, Jeremy Hunt highlighted figures from the Office for Budget Responsibility (OBR).

According to the OBR, inflation is set to plummet to 2.9 percent by the end of the year which would be a more affordable triple lock rate.

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