Half of people who have passed the state retirement age do not trust the UK government after the triple lockdown was suspended
A new survey of 2,000 UK adults by independent price comparison website NerdWallet found that the recent decision to suspend the triple lockdown on state pensions has undermined public confidence in the UK government’s pension policy, particularly among those over 65 .
In September 2021, the UK government announced that the triple lockdown would be suspended for one year, meaning that the next increase in the state pension, which will come into effect from April 2022, will now be determined by the higher of the two CPI inflation rates, or 2.5%, with the potential reference to average income being temporarily removed.
About 35 percent of respondents said the UK government’s decision to suspend the triple lock has reduced their confidence in their pension policies, a number that climbs to 52 percent for those over 65.
Back in July, the Bureau of Budgetary Responsibility proposed that the triple lock should be topped up by 8 percent as wages increased after the UK government’s state pension spending was locked.
But despite the economic case for the move, support for the triple lock suspension is low, with only a quarter (25%) of respondents agreeing with it.
Support was highest among the youngest 18-24 year olds (40%) and lowest among 45-54 year olds (19%).
Overall, more than a third of respondents (35%) said the suspension of the triple lockdown of the state pension made them concerned about the impact on their future retirement income.
On the positive side, lifting the triple lock could encourage individuals to be more personal about retirement rather than relying on the state pension.
According to NerdWallet, 19 percent of respondents said that as a result, they would likely see more personal retirement savings through their company or private pension plans, with nearly half of 18- to 24-year-olds (47%) wanting to take positive action.
Commenting on the results, Richard Eagling, Senior Pensions Expert at NerdWallet, said, “The Triple Lock is an expensive commitment for any government, but it has received strong public support since its inception in 2011.
“Fear of voter reprisals has led the UK government to change the triple lock in an attempt to contain such liabilities, and these concerns are not unfounded.
“The triple lock suspension has undermined confidence in the UK government’s pension policy and many are wondering if more permanent changes are in sight.”
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He added: “A significant number of people are finding that they do not rely too much on state pension benefits and are now trying to top up their own pension plans to increase their chances of decent income in retirement.”
To learn more about what triple state pension lockdown means for your future, visit the NerdWallet website here.
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