Queen's Speech: Will triple lock apply to single tier pension?

The government has pledged to increase the Basic State Pension by ‘triple lock’ - the higher of inflation, earnings or 2.5% a year up to 2020.

However Aegon has called for clarity regarding whether the triple lock will apply to the new single tier state pension.

Kate Smith, Aegon’s Regulatory Strategy Manager, said:

"Enshrining in law, for the next five years, the triple lock increases to  the Basic State Pension will be a popular move for existing pensioners. But tomorrow’s pensioners need clarity now on whether the triple lock applies to the new single tier pension from April 2016.

"Remember that not everyone will get the full single tier pension due to complicated transitional arrangements. People need certainty now, so they can plan ahead and live in dignity and security in retirement. They need to be told as a matter of course how much state pension they will receive, rather than waiting until their 55th birthday. This information is also essential before deciding how to use the new pension freedoms."

Recent research by Partnership further highlighted the lack of understanding around eligibility for the State Pension. 59% did not realise that delaying taking their pension until they need it could increase their benefits and 43% were unaware that they could pay voluntary national insurance contributions to make up for any years they may have missed.  

29% did not realise that they needed to work for a certain period of time to qualify for the full state pension and 26% did not understand that taking time off to care for their families could result in a lower pension.