The triple lock is being scrapped. Here’s what its replacement would have meant for pensioners.
Prime Minister Andy Burnham has confirmed that from April 2030 the state pension will rise by the higher of September inflation or 2.5%, plus a promise that it keeps pace with earnings over the long term. The current triple lock (the highest of earnings, inflation or 2.5%) stays in place until then.
I back-tested the replacement on every state pension rise since 2012. Only 6 of the 15 years would have been different, and every one of those would have been lower. Today the full new state pension would be £228.05 a week instead of £241.30, which is about £689 a year less. The full basic state pension would be around £564 a year lower.
Why it’s changing:
💷 The state pension costs around £154bn a year, and the IFS estimates the triple lock has added about £16bn a year since 2010
🧾 Had the replacement been in place since 2011, the Treasury would be saving about £9bn a year today
🏥 The government wants to put the savings towards a National Care Service, estimated to cost around £18bn a year
The big unknown is the earnings promise. Since 2012, inflation plus the 2.5% floor would have beaten wage growth, so the guarantee would never have kicked in. The government also hasn’t said how it will be measured.
What this means for you:
✅ Nothing changes before 2030, and it still has to get through an election first
✅ Get a state pension forecast and check your National Insurance record
✅ Don’t rely on the state pension alone, as the full new state pension is about £12,500 a year
✅ Watch the tax threshold. The personal allowance is frozen at £12,570, so the state pension is heading into taxable territory
Full breakdown explanation and analysis via the LINK IN BIO
Should the triple lock stay or go? Let me know below 👇
#triplelock #pensions #retirement #personalfinance #ukpensions
Prime Minister Andy Burnham has confirmed that from April 2030 the state pension will rise by the higher of September inflation or 2.5%, plus a promise that it keeps pace with earnings over the long term. The current triple lock (the highest of earnings, inflation or 2.5%) stays in place until then.
I back-tested the replacement on every state pension rise since 2012. Only 6 of the 15 years would have been different, and every one of those would have been lower. Today the full new state pension would be £228.05 a week instead of £241.30, which is about £689 a year less. The full basic state pension would be around £564 a year lower.
Why it’s changing:
💷 The state pension costs around £154bn a year, and the IFS estimates the triple lock has added about £16bn a year since 2010
🧾 Had the replacement been in place since 2011, the Treasury would be saving about £9bn a year today
🏥 The government wants to put the savings towards a National Care Service, estimated to cost around £18bn a year
The big unknown is the earnings promise. Since 2012, inflation plus the 2.5% floor would have beaten wage growth, so the guarantee would never have kicked in. The government also hasn’t said how it will be measured.
What this means for you:
✅ Nothing changes before 2030, and it still has to get through an election first
✅ Get a state pension forecast and check your National Insurance record
✅ Don’t rely on the state pension alone, as the full new state pension is about £12,500 a year
✅ Watch the tax threshold. The personal allowance is frozen at £12,570, so the state pension is heading into taxable territory
Full breakdown explanation and analysis via the LINK IN BIO
Should the triple lock stay or go? Let me know below 👇
#triplelock #pensions #retirement #personalfinance #ukpensions
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Ai ajuns la finalul listei 🎉