Daily Mirror (Northern Ireland)
Senior disservice »
Lost generation face poor & sick retirement Fears Sunak will axe pensions triple lock Cases: Deaths: 299,251 42,153 Cases:8,323,035 Deaths: 447,961
PEOPLE in their 50s and 60s could retire poorer and in worse health than the generation before them because of the pandemic, campaigners warn.
One in five in this “lost generation” have suffered deteriorating physical health during the lockdown, and a third say their mental health has worsened.
Nearly half believe their personal finances will take a hit in the next year, found an Ipsos Mori poll for the Centre for Ageing Better.
The charity’s chief Anna Dixon said: “This group are being ignored when it comes to proposed actions to support the recovery. At the same time, it’s clear this group also face serious risks to their health.
“If this generation continues to be an afterthought in the coronavirus recovery we’ll see a lost generation entering retirement in poorer health and worse financial circumstances than those before them.”
It came amid suggestions that
Chancellor Rishi Sunak was considering suspending the Tories’ triplelock pensions manifesto pledge.
The mechanism ensures the state pension rises in line with the highest of wages, inflation or 2.5%, so any change would save the Treasury billions – but also risks angering millions of pensioners.
Experts believe a temporary suspension is inevitable unless the Government is prepared to pay a massive bill next year.
There are signs that the bounce back in wages for furloughed workers could push up average earnings and put pensioners in line for an 18% increase. There is also uncertainty over inflation.
Boris Johnson yesterday warned
of “tough times ahead” as ministers faced pressure to increase support for some of the poorest households.
The triple lock could be replaced with a lower guaranteed minimum of 1% or 1.5%, or a “double lock” – raising the pension by the highest of inflation or earnings growth, but with no guaranteed minimum.
Retirement expert and former
Tory Pensions Minister Ros Altmann said: “The Government absolutely must protect pensioners... However, all policy decisions are likely to be revisited in light of the health and economic crisis.
“It is important not to rush to hasty conclusions, but I hope [people] will consider the way the triple lock actually works and objectively assess whether it may have run its course.” Downing Street played down the suggestion the triple lock could be suspended or scrapped. But a No10 source said: “These are unique and challenging economic circumstances and we can’t hide from that.” A spokesman for Labour leader Keir Starmer said: “We’ve long said the triple lock is an important means of addressing the relatively low state pension by international standards.” The TUC also warned the triple lock must stay because our state pension is one of the lowest in the developed world.
Chief Frances O’grady said: “Boris Johnson promised to honour this manifesto pledge just last month. Pensioners should be protected from the impact of any fall in wages or inflation this year.”
The coronavirus death toll rose 184 yesterday to 42,153, although the true figure is thought to be significantly higher.