The State Pension Triple lock

​20th November 2018

British Expat Pensions

British Expat Pensions

Pension TRansfer Specialists

The UK state pension is something that has been the topic of many a political campaign in recent years, and the much bandied 'triple lock' is always paraded as a golden promise for our old age. But, what is it? And will it still be around for us in the future?

The introduction of the triple lock was announced by the Coalition Government in its first Budget after the 2010 election. It states that the UK state pension will increase by the higher of three things:

• A measure of inflation known as the Consumer Price Index or CPI
• Annual average earnings growth
• 2.5%

This means that your state pension currently increases by at least 2.5% a year!

This clearly isn't a huge amount, but it has been more than inflation most years since the financial crisis. So the government look at this as possibly being too generous. The removal of the triple lock could save the government billions, and it has raised a few cabinet eyebrows.

Moving forward it's hard to guess whether the triple lock will still be around, but it is known that the government does not want citizens to rely on the state in their old age. The UK state pension is often ranked as the worst state pension in the developed world.

Always maintain a company or personal pension where possible, as this is the only way to guarantee the retirement you want and deserve!