Steven Cameron, Pensions Director at Aegon, comments on the news that the Government is no longer making any commitments to the state pension triple lock before the autumn statement:
“The triple lock U-Turns continue with state pensioners now being told the Government won’t make any commitments ahead of the 17th November autumn statement. This comes after previous Prime Minister Liz Truss committed to honouring it the day before resigning, now replaced by Rishi Sunak. The eventual outcome after so many twists and turns is too tough to call. On the one hand, Rishi has said he is seeking to deliver confidence and security, but further uncertainty over the triple lock offers neither to state pensioners. He has also said he’ll honour Manifesto commitments, which included the triple lock, although the earnings component was suspended last April. On the other hand, no-one doubts the hugely difficult challenges the Government faces in balancing the books and today’s state pensions are paid from the National Insurance collected from today’s workers, not from some huge accumulated pot. Those pensioners heavily or totally reliant on the state pension are most at risk here, highlighting the benefits to today’s workers of making the most of workplace pensions.”
