Future of State Pension Triple Lock rule is 'difficult decision’ for UK Government, warns money expert

dailyrecord.co.uk:

The cost of living crisis is set to continue into 2023 making it important for everyone nearing retirement age, or those already drawing their State Pension, to understand the implications of changes that could affect savings, pensions and investments.Inflation may have passed its peak of 11.1% in late 2022, but just because it may be lower in future does not necessarily mean that prices will return to where they were.

It simply means they will just be rising more slowly.Steven Cameron, Pensions Director at Aegon, warns that the UK Government has a “difficult decision” to make over the future sustainability of the State Pension Triple Lock following the upcoming 10.1% April uprating.

He also speculates that the State Pension age could go up to 68 a decade earlier than planned, affecting retirement plans for millions of workers.The State Pension Triple Lock, the guarantee which increases State Pensions by the highest of Consumer Price Inflation (CPI), earnings increases or 2.5% each year, is being honoured in April.This will mean a record breaking increase of 10.1% to the State Pension which is good news for State Pensioners whose 3.1% increase last year fell short of inflation then.However, the State Pension is paid for by those of working age through their National Insurance Contributions and the 2023 increase comes with a very high price tag.Steven explained: “There’s a big question over whether the Triple Lock can be sustained in future years, when both price inflation and earnings growth are high and subject to sharp changes.“It won’t be until autumn that we’ll know what the Triple Lock formula would deliver, and the UK Government will then have a difficult decision to make.”Full New State PensionYou are eligible for