22 November 2023
The government has confirmed it will maintain the triple lock, meaning the state pension will be uprated in April 2024 by 8.5%, in alignment with average earnings growth. This is measured by the usual metric of earnings growth in May-July.
The triple lock is a commitment made by the government to raise the value of the state pension each tax year by the highest of:
average wage growth
Small pension pots
The issue of ‘small pot’ pensions has been highlighted for some time now, and this was addressed within Jeremy Hunt’s Autumn Statement speech and in the associated documents.
The government will publish a call for evidence which looks at a lifetime provider model. This would mean that when someone moves to a new employer, they could request for their contributions to be paid into their existing pension scheme. This would allow individuals to move towards having just one pension pot for life, giving them a greater understanding and more control over their retirement savings.
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