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The State Pension is supposed to increase every year, in line with whichever is the highest out of the following percentages:
This is known as the “triple lock” 🔒, which comes into effect every April.
In 2010, the government introduced it to ensure that the value of your State Pension was not falling behind either the cost of living or the working population’s income.
In 2019, the Conservative government confirmed it would keep the pension triple lock in place.
People in the UK were earning wages higher than usual due to the government furlough scheme. Because of this, the triple lock was suspended.
State Pensions increased in line with inflation at 3.1% for 2022/2023.
The government will reinstate the pension triple lock from April 2023. This was confirmed during the 2022 Autumn Budget.
The State Pension for 2023/2024 can increase in line with:
Or not at all.
The triple lock may either be restored or completely suspended😰
The pension triple lock is in place to make sure that the State Pension doesn’t lose value or isn’t overtaken by the rising cost of living.
With the average retirement age being 64 and the average life expectancy in the UK being 86, the average period of retirement is around 20 years.
This means that, on average, you will be receiving your pension over the course of 20 years so it’s important that pensions keep up with changes in the economic climate.
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