What is the triple lock?
The triple lock is the system used by the government to make sure that State Pension payments rise by at least inflation, average wage growth or 2.5% every April. This means that if inflation is low and wage growth is stagnant, pension payments will still rise. It also means that if the rate of inflation shoots up or wages grow rapidly, State Pension payments can keep up.
The inflation figure used is the Consumer Price Index (CPI) rate from the previous September and the wage inflation data is from the previous May to July. This means that as wage growth for May to July 2025 was 4.6%, the State Pension will rise by at least that figure next April. The only way it could be more would be if the CPI rate for September 2025 – published in October 2025 – comes in higher. As it is not expected to, serps will likely rise by a smaller amount than the State Pension. This means some of the oldest UK pensioners will miss out on hundreds of pounds compared to if the triple lock were used across the board.
The State Pension is one of the Treasury's biggest expenses and could hit £200bn by 2073 in the face of rising life expectancy and payment growth from the triple lock. To combat this, the government is continuing to increase the State Pension age. First from 66 to 67 by 2028, then 68 by 2046.
Keep in mind that despite the name, the government is able to change the details of the triple lock, or even suspend it entirely. In 2021, it was decided that wage growth figures were too high (at 8.8%, partly due to the withdrawal of pandemic furlough payments), so the CPI rate of 3.1% was used instead. This is possible because the triple lock is a government commitment that it is not legally bound to stick to, rather than an act of parliament that is enshrined in law.
Why are some people missing out?
The State Pension was reformed in 2016, creating the New State Pension for people who reached pension age from 6 April 2016 and the Basic State Pension for people who reached pension age before 6 April 2016. The Basic State Pension can be a bit complicated and consists of multiple components, including 'serps', which essentially gave workers a way to build up extra pension payment entitlements. These payments are not part of the triple lock and instead rise with inflation.
This risks some older pensioners feeling shortchanged when their main State Pension payments increase by a certain amount, but their additional entitlements rise by less.
Becky O’Connor, of PensionsBee, said: "It’s tempting to fall into the trap of thinking all older people are going to benefit disproportionately from state pension increases compared to working people.
"But the state pension system is complicated, and in fact, millions of older people do not get the increases and this falls below the radar.
"There is a hidden layer of pension poverty, and the majority of pensioners who rely on basic state pension are susceptible to. Headline increases to the new state pension hide the reality for millions."
How does the State Pension work?
The State Pension is a regular income provided by the government that most people will be able to claim once they reach a certain age, known as the State Pension age, until they die. Payments are usually made every four weeks.
The payment amount is, in theory, enough to meet your basic expenses in retirement, but you will likely need a workplace or personal pension as additional retirement income.
The amount you get will depend on how many years of National Insurance Contributions (NICs) you have. Some gaps you have in your National Insurance record can be filled through voluntary contributions and people who are unable to work for certain reasons can top up their National Insurance record through the National Insurance credit system.
How to boost your retirement income
The State Pension is unlikely to be enough to function as your sole income in retirement, even if payments continue to increase through the triple lock.
With a personal pension, you can choose how much to pay in and how often to do it. The money is then invested into different funds, which should help your pot grow into a suitable nest egg for your retirement. Your personal pension keeps your retirement savings in a pot that you cannot spend until you are at least 55 (increasing to 57 from April 2028) and helps you access tax relief on the money you save. We explain more in our article 'How to build a low cost DIY pension'
Most people will have a workplace pension put in place by their employer. This offers the double benefit of creating a fund for your retirement and earning you extra money through employer contributions. Your payments will come directly from your salary and you will be automatically enrolled if you are eligible, unless you choose to opt out. You can have both a workplace pension and a personal pension.
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