The State Pension Triple Lock Mechanism means the basic and new state pension increases each year by the highest of: average earnings growth, inflation or 2.5 percent. However, due to the pandemic, there are concerns about whether data could be warped and thus drastically impact the mechanism. As more people get back into employment, average wages are significantly rising, as a factor which could impact the state pension.
Average wages are currently rising at a rate of approximately six percent, but economists estimate an increase of eight percent in the coming months.
With this potential option on the table, it has been widely speculated as to the future of the Triple Lock policy.
Bearing this in mind, an Express.co.uk poll asked readers whether the mechanism should be broken if pensions were to rise by eight percent.
Out of the 6,825 responses to the poll, a staggering 87 percent said the triple lock should not be broken under this circumstance.
However, not all shared this opinion with some 12 percent of individuals stating the triple lock should be broken if the percentage were to rise substantially.
READ MORE: Pension: Britons may get up to £85,000 compensation for poor advice
Many Express.co.uk readers were quick to defend the potential for an eight percent rise to the state pension in the coming tax year.
A number of people cited that a promise had already been made through the Triple Lock Mechanism, and it was now the responsibility of the Government to ensure this was being achieved.
While others said it was the hard work of older generations which meant an entitlement to a state pension increase should be honoured.
One person wrote: “The UK has one of the lowest pensions in the world, and also discriminates against pensioners who want to live outside the UK.
“Eight percent is a drop in the ocean after all their contributions. They should receive a living income. It is a right, not a benefit.”
Another person fumed: “No way must the triple lock be changed or altered! The older generation have worked hard and suffered for our very small pensions now!
“Do not change or take away our pensions Boris, or we the pensioners will tear down your blue wall!”
While a third said: “No, the triple lock should not be removed. Pensioners get precious little as it stands.
“After a lifetime of work and paying their dues, they deserve the dignity of being able to pay their bills with a bit left over for a luxury here and there, instead of struggling and living close or below the poverty line.”
However, this was not a view which was expressed by all Britons asked, with some Express.co.uk readers disagreeing with a potential rise of eight percent, for a number of reasons.
One person suggested they would be prepared for a lower state pension increase if funds were rerouted elsewhere.
They wrote: “Make it a five percent rise, and then give the extra three percent to the front line NHS staff. They have earned it!”
While another reader suggested a high rise might be unaffordable, writing: “The pension should just keep up with inflation. I would set it at inflation plus one percent. At the moment we cannot afford much more.”
A third individual cited the strains of the pandemic as a reason an eight percent increase would not be feasible, stating: “Under the current unusual circumstances, it would be wrong to increase the state pension in excess of five percent. I would accept a one-off cap.”
But a final reader slammed those who look towards the state pension as a primary source of income.
They said: “Any pensioners who rely entirely on their state pensions haven’t planned for their retirement.
“Pensioners are always moaning and trying to get everything discounted, yet they are the ones with all the money - mortgage paid off, free transport etc.
“We’re pensioners who have planned and saved for our retirement. Neither of us have been out of work, have always paid a full stamp and never claimed a penny in benefits.”
The Government has refuted the idea the Triple Lock may be up for change in the coming months.
However, in an interview with GB News presenter Andrew Neill, the Chancellor Rishi Sunak said the matter would not be confirmed until the autumn statement.
No comments:
Post a Comment