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

 Rachel Vahey: Advisers and clients still need clarity on NMPA increase

Rachel Vahey: Advisers and clients still need clarity on NMPA increase

'HMRC has had years to clear this up but has sat on its hands'

Rachel Vahey
clock 11 March 2026 • 4 min read
Pension freedoms exposed a longevity problem we still refuse to confront

Pension freedoms exposed a longevity problem we still refuse to confront

'The gap between product complexity and consumer understanding is not narrowing'

Julia Fintz
clock 11 March 2026 • 4 min read
Complex Hartley Pensions administration continues amid 'misappropriated funds' investigation

Complex Hartley Pensions administration continues amid 'misappropriated funds' investigation

Administration expected to conclude in 2027

Isabel Baxter
clock 10 March 2026 • 3 min read