Changes to the triple lock policy on the state pension could be just a few years away, an expert has warned.
Labour has committed to keeping the triple lock in place for this Parliament, but analysts at True Potential have cautioned the Government may tweak the policy if re-elected.
Neil Rayner, head of Advice, said of the newly elected administration: “Their decision to commit to maintaining the triple lock for this Parliamentary term means that they are unlikely to renege on this promise to keep the state pension affordable.
“Without significant changes, there is not much that they can do to keep the state pension affordable in the short run.
“However, it is telling that Labour haven’t recommitted to the pension lock further than this parliamentary term meaning they may be willing to change it should they win again in 2029.”
Mr Rayner noted that both Labour and Conservative MPs have previously warned the triple lock will soon become unsustainable.
Explaining the pressures on the state pension, he said: “As those in retirement continue to make up a larger proportion of the population the cost to the Government will balloon, with some estimates suggesting that it could cost the Government £950billion by 2072 roughly eight times the spending in 2023.
“This inherent unsustainability means the state pension for millions of young people remains a real uncertainty who should be considering how to protect themselves through the use of a personal pension.”
Another option to ease the pressure of the rising costs of the state pension is to increase the state pension age.
There were recent suggestions the Government may have to hike the state pension age to 71 by 2050 to keep the policy affordable.
Britons can currently claim their state pension when they turn 66 although this is gradually increasing to 67 and then to 68 over the coming years.
The full new state pension is currently £221.20 a week after payments increased 8.5 percent in April in line with the triple lock.
You may be able to increase your state pension by filling gaps in your National Insurance record.
You can check how much state pension you are on track to receive using the state pension forecast tool on the Government website.
