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State pensions to rise as triple lock survives

Discussion in 'Retirement' started by nomad, Sep 23, 2020.

  1. nomad

    nomad Star commenter

    State pensions will rise next year after the Government moved to protect pensioners from the worst of the economic damage caused by the pandemic. A Bill being introduced today will avoid a freeze on the state pension next April - which would have otherwise occurred, as payments can only increase if there has been a rise in average earnings.

    Triple lock guarantees that the state pension rises every year by the highest of wage growth, inflation or 2.5 per cent. And this is what coronavirus means for your pension if you have just retired.
     
    PeterQuint likes this.
  2. lindenlea

    lindenlea Star commenter

    Thanks for flagging that up @nomad
     
    nomad and Lara mfl 05 like this.
  3. Lara mfl 05

    Lara mfl 05 Star commenter

    Agreed, thanks for flagging it up. I heard notification on the radio yesterday and they warned that next year, when the decision comes again, after all the economic outfall may be more of a problem, so we need to celebrate that they've agreed to leave it in place for this year.
     
    nomad likes this.
  4. Rott Weiler

    Rott Weiler Star commenter Forum guide

    Why would there have been a freeze if there had been no rise in average earnings? If the triple lock means pensions increase by the highest of wage growth, inflation or 2.5 per cent there wouldn't be a freeze, they'd still go up by at least 2.5% (Telegraph article is behind a pay wall).
     
    emerald52 and border_walker like this.
  5. lindenlea

    lindenlea Star commenter

    They could have changed the rule. NS and I interest rates have been decimated, the triple lock could have been the next head on the block.
     
    nomad likes this.
  6. nomad

    nomad Star commenter

  7. mustntgrumble

    mustntgrumble New commenter

    There gets to be a point,
    1) the news above,
    2) I've survived three recent redundancy threats,
    3) only being four months off my npa of 60 on a final salary scheme with 38 years service and
    4) covid potentially killing me

    that retirement looks increasing attractive.. o_O
     
    emerald52, up116647 and nomad like this.
  8. diddydave

    diddydave Lead commenter

    I too wondered that and with the Telegraph behind a pay wall didn't read it but this site states that there was a clause in the original triple lock legislation that allowed for no increase if the earnings figure was negative: https://international-adviser.com/pensions-triple-lock-set-to-stay-for-the-time-being/
     
    nomad, Lara mfl 05 and Rott Weiler like this.
  9. Ivartheboneless

    Ivartheboneless Star commenter

    I thought there was a big HMG panic earlier in the year when inflation was suggested to reach 16% by the date the figure is recalculated. What happened to that then? They were talking about dumping the triple lock if that happened and their pension bills shot up. (Inflation calculations have been fiddled for at least 40 years anyway).
     
  10. afterdark

    afterdark Lead commenter

    Hmmm government moves to provide financial crumbs to daft old codgers who tend to vote them...

    Still unhappy about the pay more for longer to less back (later obviously) teachers' pension scheme.

    Find the raising of the pension age a bad sign for ordinary working folk.

    Meanwhile over billion awarded to untendered contracts.

    https://www.theguardian.com/world/2...e-contracts-without-tender-in-covid-19-crisis
     
  11. Rott Weiler

    Rott Weiler Star commenter Forum guide

    Careful! Quite a lot of pensioners seem to be frequent TES posters ....;)
     
    Lara mfl 05 and border_walker like this.
  12. christubbs

    christubbs New commenter

    The triple lock cannot continue forever can it? (plus the £6 billion on free bus passes and winter fuel allowance!!!)
     
    PeterQuint and Piranha like this.
  13. OwerAuld

    OwerAuld Occasional commenter

    Or if you are thinking along those lines (which would be understandable) Then it's more a case of:

    2) I've missed out on three recent redundancy opportunities,
     
  14. mustntgrumble

    mustntgrumble New commenter

    I'm chasing them down on that! Finances have got a lot worse and I'm older and more expensive now and they love me less each day... :)
     
    Prim likes this.
  15. OwerAuld

    OwerAuld Occasional commenter

    Stating the obvious I suppose but the challenge will be to do this without appearing too keen for it. If they get the idea that you are about ready to go - then no need for an incentive. Good luck though.
     
  16. eljefeb90

    eljefeb90 Senior commenter

    Well, what you say makes sense as pensioner poverty has reduced considerably over the last thirty years...to be replaced by child and working age poverty. But the Tories rely so heavily on older voters that they have to tread carefully . Remember that Theresa May nearly lost the election when trying to get people to pay the dementia tax.
     
  17. Prim

    Prim Occasional commenter

    I'd show them your 7 year plan :) I'm sure they would offer you the redundancy then :) Being positive about going to 67 would probably push them toward a payment :)

    Good luck.
     
    eljefeb90, brook123lyn and diddydave like this.

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