If Rishi Sunak scraps Triple Lock, women’s pensions will be jeopardized.
THE PENSION OF THE STATE According to a new study, the elimination of Triple Lock could put women at greater danger.
The State Pension Triple Lock raises the amount by the highest of three components each year: average wages, inflation, or 2.5 percent. This year’s pay statistics has been affected by the fact that more people are finding work as a result of the pandemic. As a result, the Office for Budget Responsibility (OBR) has proposed that the state pension be increased by 8% in 2022.
Many questioned if this outcome was possible, but Chancellor Rishi Sunak said that the government will take measures that was fair to “both pensioners and taxpayers.”
This response has sparked concern that the Triple Lock policy may be canceled or drastically reduced, which could have far-reaching consequences.
Indeed, one organization has warned that if this program is rejected, women would be the ones who suffer the most.
According to research conducted by Barnett Waddingham, women are significantly more likely than males to rely on a state pension.
This has sparked concerns about women’s financial security in later life, as well as the number of women who are at danger.
If the government decides to scrap the triple lock, it is these people who may bear the brunt of the policy’s abolition.
According to a research conducted by the organization, 30% of women had no private or workplace pensions.
This means they’ll have to rely solely on the state pension, which pays a maximum of £179.60 per week at the moment.
Men, on the other hand, only 17 percent of those polled claimed they were in the same situation.
However, as people get older, the pension disparity expands even more, posing new issues.
According to Barnett Waddingham, nearly two-fifths of women over 55 will rely solely on a state pension, compared to only 17% of males over 55.
Over 2,000 persons were polled in the study, with little over 1,000 of them being women.
Amanda Latham, Policy and Strategy Lead at Barnett Waddingham, spoke out about the possibility of the Triple Lock being phased out.
“With the OBR recently estimating that state pensions might rise by as much as 8%, the pensions triple lock has once again come under fire,” she said.
“An out-of-date policy.” Brinkwire Summary News.