The triple lock pension is a safeguard that applies to the UK state pension to ensure it doesnt lose value because of inflation. It was introduced in 2010 as a guarantee that the state pension would not lose value in real terms and that it would rise at least in line with inflation. The triple lock system means that each year, the state pension would increase by the highest of the following three measures:
- Average earnings
- Inflation as measured by the Consumer Price Index (CPI)
- 2.5%
In other words, if average earnings were to increase by 3%, the state pension would also rise by 3%. But if neither average earnings nor inflation rises by over 2.5%, the state pension will still grow by this amount. If you are currently receiving the state pension, the triple lock ensures that your spending power will not diminish over the course of your retirement (for as long as all three guarantees remain in place) . The triple lock may be even more important to future generations, as younger people are less likely to have the security of generous final-salary workplace pensions and will be more dependent on other sources of income. The current Conservative government has pledged to keep the triple lock in place until at least 2024, and opposition parties, including Labour, also support the policy.
