There is some research from IFS published last year (I’ll come to it) that says that the triple lock helps the rich and raising the state pension age (to 68 and upwards from there) hurts the poorest most.
This is backed up by FT research from Jonathan Guthrie he published yesterday
I cannot do more than present the links to the IFS and FT research but this comment to Jonathan’s post shows how in sync they are
Here is that research for readers who have time to understand the question
The key statement that heads this report is
The UK state pension system faces significant challenges given the country’s ageing population, but at the same time it is crucial for retirement finances: state pensions make up on average almost half of income for recently retired households. Reforms coming into force in 2010 and 2016 have increased universality, and most future pensioners will receive a full (flat rate) state pension.
Policy-makers seeking to limit the cost of the system have two obvious options: raising the state pension age or limiting increases in the value of the pension.
The current indexation method known as the ‘triple lock’ increases the value of the state pension over time but to an uncertain degree and only in times of macroeconomic turmoil. Among other reasons, differences in life expectancy mean raising the state pension age disproportionately affects poorer people. This is in contrast to limiting indexation which affects those on higher incomes more.
Jonathan Guthrie’s FT article looks more closely at Dr Morrison’s struggle to come to terms with “fair” when it comes to revising how the state pension is paid. We cannot but pity her and we can see why she has a separate project from the Pension Commission (2).
The observation that the triple lock is widening the gap between the lucky few (I am one) who benefit from deferred gratification and the triple lock and the unlucky many (who need their pension earlier) is new to me.
Addendum
It is hugely important in private pensions too, the FCA’s research in how those with small workplace pots cash out as soon as they can , contrasts with the whingeing of the rich who use their workplace pots to help their successors pay the inheritance tax as their last gift when they die.
The poor need their (state) pension now, the rich want more and can wait.