Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282952 
Year of Publication: 
2023
Series/Report no.: 
IFS Report No. R272
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
The reason why both earnings growth and inflation matter for the state pension is the pensions 'triple lock'. In place since 2011 (except for a one-year temporary suspension in 2022), under the triple lock the state pension rises in line with the highest of CPI inflation, average earnings growth or 2.5%. In this report, we first discuss how the triple lock has led to an increased level of the state pension, thereby increasing state financial support to pensioners at an increased cost to the government, over the last 13 years. We then present new analysis showing how the peculiar nature of the policy creates uncertainty around the level of the state pension for both current and future generations of pensioners. We also provide a concluding discussion.
Subjects: 
Government finances and spending
Savings, pensions and wealth
The pensions review
Distributional effects
Government spending
Pensioner benefits
Public finance
Retirement
State pensions
Persistent Identifier of the first edition: 
ISBN: 
978-1-80103-147-9
Document Type: 
Research Report

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