Advisers back call to scrap 'unaffordable' state pension triple lock

Brexit has pushed the issue, adviser says

clock • 3 min read

Advisers have backed calls from ex-pensions minister Ros Altmann for the government to scrap the state pension triple lock, saying the guarantee in its current form is "unaffordable".

Altmann said the government should abandon its triple lock on state retirement benefits - currently due to be in place until at least 2020 - in favour of a more affordable "double lock" system. The triple lock means the state pension increases each year by the higher of inflation, the increase in average earnings or 2.5%.  Altmann, who stepped down from government during Theresa May's reshuffle, claimed the triple lock has been used as a smokescreen by the government. She said: "Such totemic symbols may be politically convenient, but are not a sound substitute for carefully conside...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

IHT pensions changes expected to drive 'strong interest' in annuities

IHT pensions changes expected to drive 'strong interest' in annuities

Though ‘ambiguity’ persists on annuities treatment, retirement planning expert says

Jen Frost
clock 04 November 2024 • 3 min read
Budget end to overseas pensions 'loophole' could cause 'chaos'

Budget end to overseas pensions 'loophole' could cause 'chaos'

OTC applies to more transfers under changes

Jen Frost
clock 31 October 2024 • 2 min read
Pensions tax-free cash untouched – but what about those who acted pre-Budget?

Pensions tax-free cash untouched – but what about those who acted pre-Budget?

No lump sum change should be ‘welcomed’ but damage cannot be undone

Isabel Baxter
clock 31 October 2024 • 5 min read