Following comments by Work and Pensions Secretary Mel Stride, Steven Cameron, Pensions Director at Aegon says debates around state pension age and triple lock mustn’t be kept separate and should feature in political parties’ pre-Election Manifestos.
Steven Cameron said: “Work and Pensions Secretary Mel Stride has given a clear indication that there are big decisions to be made about the state pension after the General Election. He indicates any future Government will need to ‘grasp the nettle’ of when to increase the state pension age to 68 or possibly even higher. He also separately talks of no plans to change the triple lock ahead of the Election.
“But the future state pension age and of the triple are both hugely impactful on the future affordability of the state pension which is funded on a ‘pay as you go’ basis from the National Insurance contributions of today’s workers. The more generous the year on year pension increases are, the greater the need to accelerate increases in state pension age.
“But adapting the triple lock to avoid the risk of inflation busting increases could reduce pressures to increase the state pension age as quickly. These are huge issues of great interest to the voting public, both of retirement and working age, and each political party should set out ‘joined up’ plans in their Election Manifestos for the future of the state pension.”