Just one in five young people are in support of the triple lock as fresh data reveals the mechanism is driving a wedge between generations.
There’s a huge chasm in support for the triple lock promise between 18- to 24-year-olds and those over age 65, data from provider PensionBee shows.
Only 21 per cent of the youngest adults are in support of the state pension triple lock compared to some 82 per cent of this older age bracket.
Every year, the state pension rises by the highest of inflation, earnings growth or 2.5 per cent under this triple lock mechanism.
The Government has confirmed the triple lock will stay for the remainder of this parliament, but there are growing concerns that the triple lock will soon be reformed in the coming decades as it is branded unsustainable by critics.
Some 27% of people of all ages want to restrict the triple lock to low-income pensioners
Just 48 per cent of those surveyed by PensionBee say the continuation of the triple lock is a priority for pensions as public support grows for reform to the mechanism.
Plus, some 27 per cent of people of all ages want the triple lock to be means-tested by restricting it to lower-income pensioners while directing it away from wealthier retirees.
Some people are going even further and calling for so-called conditional models of the triple lock. One in three 25- to 34-year-olds want the promise to be capped during periods of high inflation.
Meanwhile, a quarter of those aged 18 to 24 only want the lock to be in place when the economy is growing strongly compared with just 2 per cent of over 65-year-olds.
Critics claim the lock is straining the public purse as the cost of maintaining it is set to reach £15.5billion by 2030. This will only continue to grow as it increases each year and more people become liable to claim the state pension.
However, experts claim scrapping the mechanism would disadvantage young people in the future, who have made National Insurance contributions in good faith.
If the lock was scrapped, retirees – who already underfund their private pensions – would have to save potentially hundreds of thousands of pounds more to meet a moderate standard of living.
The earnings growth figures which are used to decide the uplift are from May to July while the inflation figure which is taken into account is from September.
Annual payments climbed by 4.1 per cent in April this year to £11,973, for those on the full, new state pension.
Next year’s increase is not yet known but if the current wage growth including bonuses continues retirees can expect a boost of around 4.7 per cent.
Lisa Picardo, of PensionBee, said: ‘These figures expose a growing generational fault line around the triple lock. For many older savers, it is a lifeline that must be protected at all costs. While younger people may favour adjustments to how it is delivered, the reality is that in the short term, the triple lock is here to stay.
‘What is clear is that the debate has moved beyond whether the triple lock should exist. The real question now is how it can be made sustainable, fair, and fit for the future.
‘Policymakers must strike a careful balance: protecting the dignity of today’s and tomorrow’s retirees on one hand; and on the other, solving for sustainability and the weight of the tax burden borne by those contributing into the system now and in the future.’
