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UK State Pension and annual increases

One of the main attractions of the UK state pension is the underlying commitment to annual increases. The “triple lock”, as the system for annual reviews of the UK state pension is more commonly known, was introduced by the Cameron government in 2010 and essentially means that the UK state pension increases by the higher of:

  • increase in average earnings UK Pension Pound
  • CPI
  • 2½%

There are very few annuity type occupational pensions with this sort of inbuilt protection of value! Of course, it is a political commitment without any legislative substance and can be revoked without even approval from the House of Commons. However, it still is a critical hedge in preserving value.


The triple lock effectively protects the real value of the UK state pension relative to earnings and inflation…. a very valuable protection! This protective measure has seen the UK state pension benefitting from a cumulative 20% increase over the last 7 years. That is certainly more than can be said for earnings! All the more reason to contact us and see how the system may benefit you


If you want to discover more about the “triple lock” provisions, see attached article from The Guardian discussing the triple lock, 27 April 2017:

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