If you are already receiving your pension or you are keen to keep on track of your pension plan options then you might be wondering what the triple lock system means.

Triple lock pension

This is the system which maintains the rising pension payments so they stay in line with the rise of inflation and cost of living. The triple lock pension ensures that the state pension pot rises with the average earnings growth, inflation or 2.5%, whichever one is highest.

This systems allows pensioners who are relying on the state pension to be able to afford rising prices without worrying.

The BBC reports that Jeremy Hunt has promised that the triple lock system will remain apart of the conservative manifesto if they win the next election.

This promise is no surprise as pensioners are a large portion of the conservative voting demographic.

The state pension cost £110.5bn in 2022-23 which is just under half of the total government spending's on benefits.

The Office for Budget Responsibility estimates this will grow to £124bn this year.


How does this affect me?

If you are currently receiving state pension or are going to start in the near future you can feel secure knowing you state pension allowance will continue to rise in line with the cost of living prices.

This also mean that the cost of paying for these benefits is going to increase each year as more people reach retirement age than the young working population.

The new triple lock system could mean paying income tax for many pensioners.