Labour have pledged in their general election manifesto to retain the triple lock and will conduct a review of pensions.
Labour has said that the triple lock is “sensible in terms of winning votes” however the policy is “fraught with problems.”
Labour general election manifesto says, “Our pensions review will consider what further steps are needed to improve security in retirement, as well as to increase productive investment in the UK economy.”
Jon Greer, head of retirement policy at wealth manager Quilter, said: “Labour has unsurprisingly pledged to uphold the triple lock in its manifesto. While sensible in terms of winning votes the continuation of the triple lock is fraught with problems.”
He said the triple lock “presents a significant fiscal challenge that no party has been willing to fully address”.
Mr Greer added: “If Labour win, then during its announced review of the pensions landscape, the triple lock should be put under a microscope.
“The central dilemma is finding a balance between protecting current pensioners and ensuring intergenerational fairness, especially given the UK has an ageing population that will continue to make the state pension ever more expensive.”
Becky O’Connor, director of public affairs at pension provider PensionBee, said: “The state pension is a vital safety net for most retired households and must be preserved at a meaningful level. This is relevant not only for today’s pensioners but also for future generations.
“To preserve the state pension, some form of index-linking is necessary as without decent and reliable rises to the state pension, it will be today’s young workers who suffer most when they reach their 60s and 70s, as personal and workplace pension savings are not currently at a level where they could even come close to replacing state pension benefits.”
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown said: “It’s hoped that the state pension is also included in this review to make sure it remains sustainable in the long term and that the state pension age doesn’t need to be hiked further in a bid to manage burgeoning costs.”
Tom McPhail, director of public affairs at consultants The Lang Cat said: “On the other side of the election, whoever wins, demands will be placed on pension schemes and their investment strategies to adapt to meet the political agenda.
“The industry should prepare for some robust conversations ahead on how fiduciary duty is defined and interpreted.”
