Advisers say the Government’s pledge on the state pension triple lock is unlikely to be maintained for long, but warn a move to the proposed ‘double lock’ will be politically challenging.
Earlier this week former pensions minister Ros Altmann criticised the Government for dodging difficult decisions on the sustainability of the triple lock.
The Government has committed to increasing state pensions each year by either inflation, average earnings or 2.5 per cent, whichever is highest.
Altmann says keeping the triple lock beyond the agreed 2020 date is too expensive.
She is arguing for a double lock that only increases the state pension based on earnings or inflation.
The Department of Work and Pensions has refused to rule out a review of the policy.
Thameside Financial Planning director Tom Kean says: “Most people sympathise with pensioners and the poor savings rates they’ve got, but 2.5 per cent is an artificially high minimum and logic would dictate that the double lock is fairer.”
Page Russell director Tim Page says: “Introducing a double lock would be a politically difficult move. As we saw in the referendum, the oldies vote and the youngsters don’t, so it is going to be a brave government that gets rid of it.”
Yellowtail Financial Planning managing director Dennis Hall says: “At some point there will be a reversal of this by a future government.”