Former Pensions Minister Ros Altmann's resignation was due
to the fact the UK Government disagreed with her ideas regarding the
'triple-lock' on pensions. All pensions from decades past would benefit from
added increase from inflation, earnings or 2.5%, whichever is greater.
She states the 2.5% annual increase is unjustified
especially during a time the economy is having trouble to maintain its course
to stability.
Most pensioners in three decades benefit from this deal.
Pensioners receive about £125 a week and have an additional 75p in addition
because of the said deal.
Now, pensioners earn about £570 more for the year.
Not everyone agree with Mrs Altmann's sensitivities. Former
Pensions Minister Steve Webbb said the the triple lock is still needed to make
up for the years the pensioner's incomes have slowed down.
According to Aegon
Head of Pensions Kate Smith, the state pension is the 'bedrock of people's
retirement incomes.
She added that to give the pensioners certainty, governments
must ensure midterm changes do not occur.
Tom McPhail, head of retirement policy at Hargreaves
Lansdown, says the triple lock is diverting a growing share of Government
spending towards pensioners: “A balance always needs to be struck between
protecting the standard of living of pensioners and not over-burdening
taxpayers.
"Increases should be linked to retail prices and the
state retirement age pushed back even further.”
