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Advisers brand double lock state pension ‘politically difficult’

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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.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. No difficult at all. Like all unpleasant decisions that will be made in the future regarding public affordability, it will be blamed on Brexit. And it is hardly likely to rebound at the next election as I think there will be bigger issues that will influence us oldies!

  2. We may end up with a system which retains triple lock for pensioners with less than say £20k of income and double lock for those above this figure.

  3. As soon as inflation reaches about 2.5% they will have the political ‘cover’ to do away with that part of the lock. Only problem is we don’t know when that will be but a spike in oil prices, when the world economy recovers just a bit, would do it.

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