Pensions triple lock: interactive investor comments

Following a series of U-turns, could a potential backslide on the pensions triple lock guarantee leave another blemish?

Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The road to economic growth has been emblazoned with tyre marks following a series of screeching U-turns – could a potential backslide on the pensions triple lock guarantee leave another blemish?

“The triple lock policy has become a symbol for doing right by older people, but with public finances at its most stretch since the post-Second World War era these are worrying times for current and future generations. The situation has been made worse by the soaring cost of seemingly everything from the cost of groceries to energy bills.”

Alice Guy, Personal Finance Expert, interactive investor, says: “Scrapping the triple lock would cost pensioners dear as galloping inflation means sky-rocketing bills are becoming increasingly unaffordable.

“The state pension is currently guaranteed to rise by at least the level of inflation but downgrading the rise to the rate of wages would leave pensioners with a black hole in their finances.

“Pensioners have fewer options than working-age people and are often unable to return to work due to ill health.

“Despite this the Great British Retirement Survey found that nearly one in 10 people aged over 65 are continuing to work beyond typical retirement age, with two-thirds of them (65%) continuing to work because they need the money.

“It’s a potential nightmare as scrapping the triple lock could mean that more pensioners are forced back into the workplace, despite ongoing health problems.”

Relevant findings from interactive investor’s Great British Retirement Survey 2022

• Nearly one in four (23%) of our general population sample over 65 do not own their own home
• 6% are still paying off a mortgage. 
• Half of women (48%) aged over 65 are dependent on the state as their only source of income (compared with 29% of men).
• Nearly half (49%) of our retired respondents told us they have physical or mental health conditions or illnesses lasting or expected to last 12 months or more, and 16% told us this affects their ability to carry out daily tasks. This is in contrast to non-retired respondents, 29% of whom have conditions or illnesses, with 8% affected greatly.