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UK state pensions obey the so-called 'Triple Lock' rule where they increase in payout yearly according to the greatest of: 1. the growth in national average e
by 666lumberjack 7y ago
UK state pensions obey the so-called 'Triple Lock' rule where they increase in payout yearly according to the greatest of:
1. the growth in national average earnings;
2. the growth in retail prices as measured by the Consumer Price Index;
3. 2.5 per cent.
This causes an additional increase in pension costs over time on top of the effect of the country's aging population and is a source of resentment among some young people.
- treerock 7y agoThat's got to be offset by the increasing pension age? Apparently accelerating the changes saved around £215bn (between 2011 and 2026). https://www.bbc.co.uk/news/business-49917315 https://www.bbc.co.uk/news/business-49917315
- 666lumberjack 7y agoIn the short term maybe? A forward shift in age threshold is essentially a one-time reduction to expected future pension expenditures, whereas the triple lock and increasing post-retirement life expectancy are continuous increases.
- stu432 7y agoIf you think the raise of pension age is a one-time event, I think you'll be sorely disappointed.