1 thought on “Why the UK pensions triple-lock is a costly economic – and political – mistake”

  1. Posted 20/10/2015 at 15:12 | Permalink

    “Compared with an earnings uprating, it’s estimated to add 9 per cent to benefit expenditure by 2040 and 23 per cent by 2070.”

    This may be true, but it is the overall cost which is important, not the cost compared to what it would have been. What is happening to the overall cost? People are also living longer which implies higher cost but the pension age is going up (and people will contribute for longer as a result) which will reduce cost. Higher state pensions will also lessen the need for means-tested pensioner benefits, this partly cancelling out the extra cost of the triple lock. We need to know the overall picture, not just the effect of the triple lock compared to not having the triple lock.

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