'The Chancellor's Budget should boost pension saving, not undermine it'

MILLIONS more Britons will suffer pensioner poverty if the triple lock is scrapped, according to shocking analysis based on government forecasts.

- DAVID WILLIAMSON

Legions of workers are on course for a major drop in income when they retire.

But the situation will be far worse if Chancellor Rachel Reeves bows to pressure and allows pensioners' incomes to be whittled away, it is warned.

Some 14.6 million people of working age can already expect a "sharp drop in their standard of living" when they retire, says former pensions minister Sir Steve Webb.

But if the triple lock - which ensures the state pension rises by the highest out of 2.5%, inflation or the increase in average earnings - is abolished then the UK faces a new cost of living crisis. If the state pension only rises in line with average earnings then 19 million people will fail to hit the target for a decent retirement, including payouts from their personal pension pots.

This means the average earner would receive less than two-thirds of their pre-retirement income when they stop working.

And if the pension is only linked to inflation then 26.1 people million will be in this challenging situation.

Campaigners warn that older people are already "skipping meals or sitting in the dark to save money" and described the triple lock as a "lifeline".

Sir Steve's analysis found that scrapping the safeguard would have worrying implications for the worst-off in society.

Today, 4.6 million people are not expected to have enough for even a "minimum" standard of living after they retire. This would be the case for six million if the pension is just linked to average earnings and would soar to 11.7 million if pegged to inflation.

Labour has committed to keep the triple lock "for the rest of this parliament". And Conservative leader Kemi Badenoch has said the Tory policy is "to keep the triple lock". But campaigners will want cast-iron guarantees at the next general election that pensioners will be protected from poverty.