OECD urges reform of 'costly' state pension triple lock

State pension change would ease eroded ‘fiscal headroom’

Jenna Brown
clock • 2 min read

The government should change the “costly” state pension triple lock policy to give it more “fiscal headroom” against a continuously challenging economic background, according to the Organisation for Economic Co-operation and Development (OECD).

The Paris-based economic policy forum recommended the UK government should index state pensions to an average of the Consumer Prices Index (CPI) and wage inflation instead of the current system. It added that it should also provide direct transfers to poor pensioners to "mitigate poverty risks". Commenting specifically on the UK in its latest Economic Outlook report, it said: "Maintaining and strengthening current fiscal efforts is essential against the challenging backdrop of high borrowing and debt, and as higher debt interest payments have eroded fiscal headroom. "Reforming the cos...

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

Pension consolidation deserves more respect than it gets

Pension consolidation deserves more respect than it gets

'For me, pension consolidation is a perfect illustration of why financial planning matters'

Andy Zanelli
clock 19 February 2026 • 5 min read
Divorce, pensions and professional collaboration in the HNW world

Divorce, pensions and professional collaboration in the HNW world

'Beware the attraction of the simple solution'

Richard Kershaw
clock 16 February 2026 • 3 min read
A century of the state pension – and why the next redesign is overdue

A century of the state pension – and why the next redesign is overdue

'A pension promise only works if contributors believe it is fair and durable'

Adam Cole
clock 16 February 2026 • 4 min read