OECD urges reform of 'costly' state pension triple lock

State pension change would ease eroded ‘fiscal headroom’

Jenna Brown
clock • 2 min read

The government should change the “costly” state pension triple lock policy to give it more “fiscal headroom” against a continuously challenging economic background, according to the Organisation for Economic Co-operation and Development (OECD).

The Paris-based economic policy forum recommended the UK government should index state pensions to an average of the Consumer Prices Index (CPI) and wage inflation instead of the current system. It added that it should also provide direct transfers to poor pensioners to "mitigate poverty risks". Commenting specifically on the UK in its latest Economic Outlook report, it said: "Maintaining and strengthening current fiscal efforts is essential against the challenging backdrop of high borrowing and debt, and as higher debt interest payments have eroded fiscal headroom. "Reforming the cos...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Why pension transfers remain stuck in the slow lane

Why pension transfers remain stuck in the slow lane

'Some providers complete transfers in as little as five days on average, others take up to 90'

Lisa Picardo
clock 08 June 2026 • 5 min read
Nearly half of pension transfer scam alerts for unknown reasons

Nearly half of pension transfer scam alerts for unknown reasons

Some 35% of flagged cases related to ‘overseas investments’

Sophia Panayi
clock 08 June 2026 • 2 min read
Andrew Tully: A long-term policy framework can fix the UK's retirement undersaving problem

Andrew Tully: A long-term policy framework can fix the UK's retirement undersaving problem

'Important moment for long-term retirement policy in the UK'

Andrew Tully
clock 08 June 2026 • 5 min read