Millions of State Pensioners at risk of shortfall of more than £2,000

State Pensioners are set to lose out on over £2,000, according to new research. The government's commitment to the Triple Lock will see the maximum state pension rise from the current £11,502 to £11,973 per annum. However, this falls significantly short of what's needed for a comfortable retirement.

The Pensions and Lifetime Savings Association suggests that a single person requires £14,400 annually to maintain a minimum living standard in retirement. Meanwhile a moderate standard requires around £31,300. The triple lock ensures state pension payouts increase each new financial year by one of three measures - whichever is highest: wage growth, inflation or a flat 2.5%.

The anticipated £460 increase next year is based on a wage growth of 4.1%, considerably above the minimum increase threshold. The Office for Budget Responsibility has flagged the triple lock as a 'fiscal risk' due to its 'ratcheting effect', which can put significant pressure on public finances through escalating pension costs.

The Institute for Fiscal Studies argues that the triple lock makes it challenging to predict government finances due to its three components. Additional complexities include the precise number of recipients with a full National Insurance record claiming the full state pension and the number of years they will be claiming.

Current estimates for spending on the triple lock by 2050 range dramatically from £5 billion to £45 billion annually, owing to these uncertainties.

Should alterations be made to the triple lock, the Financial Times has suggested that tying state pension increases solely to earnings growth - a 'single lock' - would be a more equitable and sustainable approach than the current system. The Organisation for Economic