{"id":32396,"date":"2025-07-30T02:03:17","date_gmt":"2025-07-30T02:03:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/32396\/"},"modified":"2025-07-30T02:03:17","modified_gmt":"2025-07-30T02:03:17","slug":"triple-lock-pensions-update-after-2050-retirement-warning","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/32396\/","title":{"rendered":"Triple lock pensions update after 2050 retirement warning"},"content":{"rendered":"

Liz Kendall confirmed that the next statutory government review into when and how to raise the state pension age\"WorkWork and Pensions Secretary Liz Kendall(Image: Jordan Pettitt\/PA Wire)<\/p>\n

A long-term commitment to the triple lock on pensions is not in the scope of the resurrected Pensions Commission, Liz Kendall has said. The Work and Pensions Secretary <\/a>has announced that she is reviving the commission, which last met in 2006, to tackle the issue of working-age adults failing to put enough money into their retirement savings.<\/p>\n

Experts have warned that people looking to retire in 2050 are on course to receive \u00a3800 per year less than current pensioners<\/a>. The commission is expected to provide recommendations for how to boost retirement income in 2027.<\/p>\n

Ms Kendall also confirmed that the next statutory government review into when and how to raise the state pension age <\/a>will start work now.<\/p>\n

During a speech launching the commission, she said: “Unless we act, tomorrow\u2019s pensioners will be poorer than today\u2019s, because people who are saving aren\u2019t saving enough for their retirement.”<\/p>\n

Lowering the age and earnings threshold at which people are brought into auto-enrollment, as well as looking at easy-access \u201csidecar\u201d savings accounts, will be among the options the commission looks into.<\/p>\n

Ms Kendall was asked if she thought it was impossible to maintain the triple lock guarantee<\/a> given its cost and if she could guarantee it would be in Labour\u2019s next manifesto.<\/p>\n

She said: \u201cThe triple lock is out of scope of the commission. We\u2019ve got a very clear commitment to that for the entirety of this Parliament.<\/p>\n

\u201cAnd what we\u2019re asking the commission to do is genuinely look at the medium to longer term, the middle of this century, and how the state pension and second pensions work together.\u201d<\/p>\n

The Office for Budget Responsibility recently said that the triple lock has already cost three times more than initially expected and suggested it was unaffordable in the long term.<\/p>\n

Ms Kendall was also asked about the potential hit to small businesses from increased automatic enrollment costs.<\/p>\n

\u201cI want our small businesses to be successful, but it is also the case, you know, fast forward to the middle of the century, 2050, if we don\u2019t act, the amount of pensioner poverty we face will cost everybody if we don\u2019t act,\u201d she said.<\/p>\n

She said she was \u201cunder no illusions about how difficult this will be\u201d.<\/p>\n

Nigel Farage said the UK\u2019s retirement age will \u201cinevitably\u201d have to rise as life expectancy increases.<\/p>\n

Asked at a press conference in Westminster whether he shared the concern that triple lock pensions are becoming \u201cincreasingly unaffordable\u201d, the Reform UK leader said: \u201cI share the concern with pensions being unaffordable on a national level. I also share the concern at the absolute scandal of the private pensions industry, which has served people terribly but done frightfully well for itself.<\/p>\n

\u201cWe\u2019re going to have to face the reality that if people are living longer and longer, then inevitably retirement age is going to have to rise.\u201d<\/p>\n

The Department for Work and Pensions<\/a> (DWP) said 45% of working-age adults were putting nothing into their pensions.<\/p>\n

The previous pensions commission recommended automatically enrolling people in workplace pensions, which has seen the number of eligible employees saving rise from 55% in 2012 to 88%.<\/p>\n

DWP analysis suggested 15 million people were under-saving for retirement, with the self-employed, low-paid, and some ethnic minorities particularly affected.<\/p>\n

Around three million self-employed people are said to be saving nothing for their retirement, while only a quarter of people on low pay in the private sector and the same proportion from Pakistani or Bangladeshi backgrounds are saving.<\/p>\n

Women face a significant gender pensions gap, with those approaching retirement in line to receive barely half the income that men can expect.<\/p>\n","protected":false},"excerpt":{"rendered":"Liz Kendall confirmed that the next statutory government review into when and how to raise the state pension…\n","protected":false},"author":2,"featured_media":32397,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,2215,4176,4174,4175,2221,56,54,55],"class_list":["post-32396","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-dwp","tag-finance","tag-personal-finance","tag-personalfinance","tag-state-pension","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/32396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=32396"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/32396\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/32397"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=32396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=32396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=32396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}