The triple lock: Uncertainty for pension incomes and the public finances

Bericht

The reason why both earnings growth and inflation matter for the state pension is the pensions 'triple lock'. In place since 2011 (except for a one-year temporary suspension in 2022), under the triple lock the state pension rises in line with the highest of CPI inflation, average earnings growth or 2.5%. In this report, we first discuss how the triple lock has led to an increased level of the state pension, thereby increasing state financial support to pensioners at an increased cost to the government, over the last 13 years. We then present new analysis showing how the peculiar nature of the policy creates uncertainty around the level of the state pension for both current and future generations of pensioners. We also provide a concluding discussion.

Object Details

• ISBN: 978-1-80103-147-9
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFS Report ; No. R272

Classification and Topics

• Classification: Wirtschaft
• Subject: Government finances and spending ; Savings, pensions and wealth ; The pensions review ; Distributional effects ; Government spending ; Pensioner benefits ; Public finance ; Retirement ; State pensions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cribb, Jonathan ; Emmerson, Carl ; Karjalainen, Heidi
• Event: Veröffentlichung
• (who): Institute for Fiscal Studies (IFS)
• (where): London
• (when): 2023

Further information

• DOI: doi:10.1920/re.ifs.2023.0272
• Handle: http://hdl.handle.net/10419/282952
• Last update: 10.03.2025, 11:44 AM CET