'Unpredictable' state pension triple lock should be replaced - IFS

Think tank says there are better indexation options

Jenna Brown
clock • 5 min read

The state pension triple lock should be scrapped and replaced with a policy that emphasises average earnings, with inflation providing a minimum floor for increases, a think tank has suggested.

The Institute For Fiscal Studies (IFS) paper said the triple lock - the current method for uprating state pension payments - resulted in unpredictable and sometimes overly generous increases. It added that increasing the state pension age to compensate for the expense of the triple lock was unfair. If left unchanged the triple lock, it projected, could "reasonably be expected to cost anywhere between an additional £5bn and £40bn per year in 2050 in today's terms". The IFS paper, produced in association with the Abrdn Financial Fairness Trust, recommended a ‘four-point pension guarante...

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

'Caution' required over potential use of pensions for house deposits

'Caution' required over potential use of pensions for house deposits

Research finds the number of retirees living in rented property could treble by 2040

Martin Richmond
clock 23 January 2026 • 4 min read
Hidden 'systemic barriers' perpetuate gender pensions gap

Hidden 'systemic barriers' perpetuate gender pensions gap

Entrenched barriers, not lack of financial confidence to blame

Jenna Brown
clock 23 January 2026 • 3 min read
Mind the (widening) gender pensions gap

Mind the (widening) gender pensions gap

‘A terrifying outcome for women in retirement’

Caitlin Southall
clock 14 January 2026 • 4 min read