Is the Triple‑Lock Pension About to Take a VIP Exit?
According to veteran advisor Tomm Adams from the consultancy firm Blick Rothenberg, the UK’s iconic triple‑lock pension scheme might just be sliding into oblivion. Why? Because the cost is ballooning faster than a hot‑air balloon in a wind tunnel and the government’s debt is doing a double‑take.
The Numbers Face‑to‑Face
- OBR alert: £15.5 bn by 2030—three times the 2011 budget!
- Designed to keep pensions ahead of inflation, wages, or a 2.5% safety net.
- Now that inflation is creeping up, tax receipts and wages haven’t kept pace—cost‑of‑living cramps in the making.
GDP vs. Pension Spend
The state pension already represents about 5 % of UK GDP. That’s a tiny fraction compared with Italy’s 10.6 % and Spain’s 8.9 %. Yet the average British retiree gets only 22 % of what they earned before retirement, versus 76 % in Italy and 80 % in Spain.
What’s Next? Heightened Retirement Age & Class Divide
Regardless of who wins the next election, the triple‑lock is almost certainly going to be retired. Coupled with a push to raise the retirement age, this is likely to make the gap between hard‑working physical jobs and desk‑based roles even wider.
Call to Action for Governments & Employers
- Strengthen workplace pensions—make saving the “new normal”.
- Boost financial literacy so people can plan the long haul.
- Maintain tax perks for those saving smartly.
- Re‑evaluate minimum pension rules at work—think of a fairytale ending, where everyone’s happy.
Welcome to the future: it’s trickier, but with a bit of planning and a dash of humor, we can all chase that golden retirement without the triple lock tying us down.
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