{"id":43844,"date":"2023-10-25T16:59:15","date_gmt":"2023-10-25T16:59:15","guid":{"rendered":"https:\/\/lethal-industry.com\/?p=43844"},"modified":"2023-10-25T16:59:15","modified_gmt":"2023-10-25T16:59:15","slug":"state-pension-triple-lock-unsustainable-despite-payment-increase","status":"publish","type":"post","link":"https:\/\/lethal-industry.com\/world-news\/state-pension-triple-lock-unsustainable-despite-payment-increase\/","title":{"rendered":"State pension triple lock \u2018unsustainable\u2019 despite payment increase"},"content":{"rendered":"

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State pensions are set to be awarded their second-biggest rate increase next year – but experts believe this is \u201cunsustainable\u201d in the long term.<\/p>\n

Retirement payments will go up by 8.5 percent in 2024 if the Government keeps to its triple-lock pledge.<\/p>\n

The triple-lock is a promise to raise state pensions by either the rate of inflation, average earnings or 2.5 percent; whichever is higher.<\/p>\n

In August, the rate of average wages including bonuses between May to July was confirmed to be 8.5 percent.<\/p>\n

As it was higher than September\u2019s Consumer Price Index (CPI) inflation rate of 6.7 percent, it is likely this will be the rate at which state pensions will go up by.<\/p>\n

Read more State Pension \u2018must rise to 75\u2019 in huge financial warning<\/strong><\/p>\n

Angela Rayner refuses to commit to state pensions triple lock<\/h3>\n

If implemented, this would be the second biggest triple-lock rate hike ever after this year\u2019s 10.1 percent increase.<\/p>\n

The new state pension will rise by \u00a3901.02 to \u00a311,501.22 a year in 2024 if the retirement payments goes up by 8.5 percent.<\/p>\n

In comparison, the \u201cold\u201d state pension would also increase next year by \u00a3690.40 to \u00a38,812.80.<\/p>\n

Despite this, experts are unsure whether the triple lock is sustainable due to the financial burden on the public purse.<\/p>\n

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Steven Cameron, the pensions director at Aegon, broke down why retirees are in line for a big payday next year.<\/p>\n

He explained: \u201cWhile the year-on-year inflation was unchanged this month from last, it had previously decreased for three consecutive months, with the Government committed to reducing it to around five percent by the end of the year.<\/p>\n

\u201cThis is still far above the Bank of England\u2019s two percent target, so the headline rate may fall even further as we head into the early months of 2024.<\/p>\n

\u201cSo a state pension increase of 8.5 percent could well be double the ruling rate of inflation come next April.\u201d<\/p>\n