New guarantees needed for long-term sustainability of state pension – IFS

A new guarantee should be set for the state pension, linked to earnings, according to the Institute for Fiscal Studies (IFS), which said there is currently no sense of what level the pension will reach or when.

Under current “triple lock” arrangements, the state pension normally increases each April in line with the rise in inflation, earnings or 2.5% – whichever is higher.

But a new report led by the IFS, in partnership with the abrdn Financial Fairness Trust, suggested a new way forward, to help ensure the state pension has a sustainable long-term future.