State pension triple lock to go double for single year
7th September 2021 15:39
by Rebecca O'Connor from interactive investor
interactive investor's head of pensions and savings comments on the shake-up.
The government announced this afternoon that the earnings element of the state pension triple lock would be abandoned for one year before being reinstated, in order to counter the impact of much higher than average earnings growth on the uprating of the state pension next year.
Becky O’Connor, Head of Pensions and Savings, interactive investor, the pension platform, said: “The state pension triple lock guarantee is no longer guaranteed – it is to go double, but only for a single year, before returning to the manifesto-pledged triple lock.
“The forthcoming state pension rise is therefore set to be in line with inflation. This should be an outcome that suits both pensioners, who depend on adequate rises, as well as critics who were concerned that a higher than justified rise was on the cards for pensioners, following a year of anomalous wage data.
“It’s important that the government follows through with the commitment to reinstate the triple lock, as the earnings measure, in normal times, helps to ensure pensioner incomes do not fall below those of the rest of the population.”
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