Triple lock causing generational angst

There are currently not many topics as divisive as the state pension. Pensioners say it is not enough and many are dependent on their workplace pensions to help them through their later years, while young people claim they are sick of paying for retirees via taxes while they have to work for the rest of their lives (or what seems like it).

Both generations have faced the retirement age being pushed back – something that is now likely to happen again as a result of Rishi Sunak recommitting to the triple lock yesterday.

Lord Willetts, a former Tory MP, told i the lock, introduced in 2010, was “funded by the speeding up of the pension age”.

He said the Government decided to bring forward the increase in the state pension age for women to help pay for the policy, adding the “precedent and evidence so far” indicates that keeping the triple lock makes it likely the retirement age could be increased further.

This means it may have to rise to 68 sooner than 2044, its current estimated increase. It will rise to 67 by the end of this decade.

A further increase begs the question as to how the pledge will be funded. i revealed earlier this week that keeping the lock is expected to fuel a £49bn increase in state pension costs by the end of next parliament and think-tanks have already said it is unsustainable.

So where will this money come from to sustain it? At present, it’s not certain.

The Government’s decision may have done enough to appease key “grey voters” – but in doing so, it could have just alienated a whole new generation heading to the ballot box.