\n\t\t\t\t\tFigures have been released days before the Budget, in which Reeves may target tax perks given to pension savers\t\t\t\t\t <\/p>\n
Up to seven million extra working-age people could end up missing out on a minimum standard of living in retirement if the state pension triple lock is ditched, unpublished Government analysis shows.<\/p>\n
Government figures on retirement saving show that 4.6 million people in the working-age population are projected to have pension income that falls below the minimum standard needed in retirement.<\/p>\n
But, the figures are calculated on the assumption that the triple lock \u2013 which ensures that state pensions rise by the highest of average earnings, inflation or 2.5 per cent each year \u2013 continue for the next 50 years.<\/p>\n
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The continuation of the lock for that long is considered unlikely, as many MPs already want to see it ditched because of its high cost<\/a>.<\/p>\n Now, a Freedom of Information request by former pensions minister Sir Steve Webb shows what would happen if the lock were to be ditched.<\/p>\n The department had already modelled two alternatives \u2013 linking the state pension to earnings or to inflation<\/a>. These projections have never been published until now.<\/p>\n They show that if the triple lock were cut and the state pension increased with inflation instead, then 11.7m could face missing out on a minimum standard of retirement income, which is 7m more than on current projections.<\/p>\n Even if the state pension was instead linked to average earnings growth, 6m would miss out on the minimum standard.<\/p>\n The minimum standard used is based on calculations by pensions body Pensions UK, which suggests a single pensioner needs \u00a313,400 per year to cover their \u201cbasic needs\u201d.<\/p>\n The analysis shows even more savers would miss adequately replacing their working-age income if the triple lock was cut.<\/p>\n The Government says there is a percentage of pre-retirement earnings an individual would need to replace to meet an adequate income in retirement. With the triple lock, 14.6m are on course to miss this. This could rise to 26.1m if the triple lock was cut.<\/p>\n<\/p>\n