Tue, 16 Sep 2025

Tue, 16 Sep 2025 How long can the UK afford the pension triple lock?

The policy has been a success, but economists have raised questions around its fairness and its sustainability.

* However, concerns remain over those with only basic state pension as their income, struggling to afford essentials like food and heat.
* The triple lock system used to increase pensions has helped cut poverty among pensioners but raises questions about its fairness and sustainability.
* The UK's state pension is less generous than the average in rich countries, relying on private savings.
* The cost of living crisis has left those reliant on state pension stretched, with some facing higher tax bills as the £12,570 income threshold approaches.
* Funding the state pension accounts for almost £140bn annually and is vulnerable to inflation extremes.
* Future costs threaten to be high, with the government's independent forecaster predicting a 50% increase in funding needs by 2070.
* Economists say the triple lock might disappear due to its reliance on resources from younger generations, workers, and business owners.
* Replacing it could involve linking state pension increases to inflation or earnings, but politicians are hesitant to make changes due to the sensitive nature of pensioners' finances with voters.
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