r/ukpolitics

The triple lock on pensions means that the State Pension increases by the highest of three metrics: inflation, wage growth, or 2.5%.

Pensions are paid from general taxation, almost half of which is collected from working people.

If pensions increase by more than wage growth (which has been the case in all but 3 of the last 12 years), working people need to contribute a larger share of their pay to keep the system in balance.

Moreover if inflation is higher than wage growth (which has been the case in all but 4 of the last 12 years), working people’s income is squeezed by both inflation and higher taxation.

On top of all this, the UK has an aging population, meaning the number of people claiming the State Pension is/has been/will be? increasing, putting even more pressure on working people to contribute more to the pension system.

This system seems fundamentally biased against working people who are forced to contribute increasingly large portions of their pay year after year. Are we expecting them to continue taking these hits indefinitely? If so, won’t there eventually come a breaking point?

Edit/correction: The state pension is funded through taxation generally, rather than NI specifically.