Pessimism over future of state pension triple lock revealed in poll

An online poll of 1,163 by interactive investor shows that 67% of respondents want the triple lock to stay this year, but only 22% think it will still exist in five years.

• Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts

Key stats:

• Two-thirds (67%) of respondents think the triple lock should be kept this year, with 70% of those aged 66 or over wanting the triple lock to stay, compared with 63% of 55-65 year olds.
• 17% think the triple lock should be modified this year to make it more affordable for the public purse.
• Only 13% of respondents think that the triple lock should not stay this year
• In contrast, only one-fifth (22%) of respondents think that the triple lock will still be here in five years, in its current form.

Source: survey carried out on interactive investor website between 25–27 September 2023 with 1,163 respondents.

Alice Guy, Head of Pensions and Savings, interactive investor says: “The results reveal overwhelming support for the triple lock, with over two-thirds thinking it should stay this year, and only one in eight thinking it should go.

“However, most people are pessimistic about the future of the triple lock and only two in 10 believe it will still exist in its current form in five years, with four in 10 thinking it will completely disappear in the next five years. A further three in 10 think the triple lock will be modified in the next five years, perhaps using smoothed data over a longer period to calculate the annual rise.

“The triple lock is a hugely popular policy, and most people want it to stay, at least in the short term. It was introduced by the coalition government in 2011 to pull up the state pension to a liveable level. But even after 12 years of generous rises, the state pension still isn’t enough for a minimum standard of living in retirement, which would cost around £13,000, according to the PLSA Retirement Living Standards.

“With final salary pensioners largely falling by the wayside, many pensioners now have defined contributions pensions, which rely on stock market performance and aren’t guaranteed. That means the inflation-linked and guaranteed state pension is extremely valuable, and it still forms the bedrock of most people’s retirement plans.

“With an ageing population, policymakers have a difficult road ahead as they weigh up the needs of pensioners with the increasing state pension bill. The triple lock is expected to add around £11 billion to the cost of the state pension this year. However, the triple lock may be more affordable this year than first appears as wage rises, combined with frozen tax thresholds, mean that taxman can expect record takings this year.”