State Pension Dilemma
November 9th, 2016
A select committee of MPs has recommended that the government ends the ‘triple lock’ for the state pension, legislation which requires it to rise each year in line with the highest of inflation, average earnings or 2.5%.
The Office of Budget Responsibility says under the current rule the cost of the state pension will rise from 5% to 6% of GDP between 2020 and 2030, and the cost will fall on the ‘millennial’ generation, those born between 1981 and 2000. The MPs say the inflation link should be removed but the earnings link retained.