Commenting on today’s announcement that the earnings benchmark of the state pension triple lock will be temporarily set aside for next year, Sarah Pennells, Consumer Finance Specialist at Royal London, said:
“Many pensioners will be deeply disappointed that the triple lock has been scrapped for next year, as the state pension is still the bedrock of many pensioner’s retirement income. Women and those who are self-employed are among those who will be particularly affected by the temporary scrapping of the triple lock, as they are more likely to rely on the state pension in retirement.”
“However, it is encouraging that the Government hasn’t abandoned its longer- term commitment. The 2.5% minimum rate has been used on a number of occasions, and is having the effect of slowly increasing what people receive in real terms. The long term trajectory of the state pension will also be more important to younger people, more than a one-off hike in line with earnings this year.”
About Royal London
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £153 billion, 8.8 million policies in force and 4,075 employees. Figures quoted are as at 30 June 2021.