- This increases to 78% of over 55s but drops to just 33% of 18 – 34 year olds
- 18% of UK adults support a move to ‘Double Lock’
- Expected increase in the state pension from April 2023 will cost in the region of £11 billion1 if inflation reaches 12% for the year to September 2022
Canada Life has revealed a generational divide on the Triple Lock2, the mechanism which commits to increasing the State Pension by the highest of inflation, earnings or 2.5%. With inflation hitting 10.1%, and forecast to go higher in the autumn, this will lead to record new State Pension provision of more than £10,000 a year for those qualifying for the full amount.
More than half of adults (55%) believe the Triple Lock should stay however support for the measure increases significantly amongst the older generations with 78% of over 55’s agreeing it should be maintained. This drops to just a third (33%) of 18 – 34 year olds.
On the other hand, a fifth (18%) think the government should revert to a ‘Double Lock’ and increase the state pension by either 2.5% or the rise in earnings, whichever is the higher. This falls to just 9% of over 55s compared with 26% of 18 to 34s and 21% of 35 to 54s that feel this way.
Andrew Tully, technical director at Canada Life:
“This is an economically challenging time and it is especially difficult for many pensioners who rely on fixed incomes. In recognition of this cost of living challenge, more than half of all UK adults support the continuation of the Triple Lock, even when it’s set to increase the State Pension by more than 10%.
“When we analyse the data we can see a difference of opinion between the generations. Unsurprisingly perhaps, the vast majority of over 55’s support the triple lock, but less than a third of under 35’s are in favour of the mechanism.
“While this largest ever increase to the State Pension will be an added strain on the public purse it’s clear there would be a significant political challenge if our new Prime Minister was to suggest watering it down.”
However, it’s important to note not all retirees currently claiming the State Pension will receive a state pension of over £10,000 a year. Presently, around a quarter of all retirees receiving State Pension benefits are paid less than the full new State Pension of £185.15 a week3.
- Source: Office for Budget Responsibility. For every 1% increase in State Pension costs the Exchequer £900m per annum. https://news.sky.com/story/rishi-sunak-could-have-to-stump-up-extra-3bn-a-year-under-pensions-triple-lock-says-obr-12350257
- Source: Opinium research of 2,000 UK adults between the 7th and 10th August 2022
Source: https://www.gov.uk/government/statistics/dwp-benefits-statistics-may-2022