Ignorance of Triple Lock is widespread

Nearly two in three adults aged 40 and over fail to understand what the pensions Triple Lock does, according to a new survey. The survey found widespread ignorance about the Triple Lock which guarantees minimum rises in the State Pension. One in four adults over 40 (25%) said they did not know what the Triple Lock did. Three in five over-40s surveyed (62%) also said that they found pension planning “daunting” and 69% felt the government needed to do more to improve people’s access to financial guidance and advice. The survey, by retirement income specialist My Pension Expert, suggests many adults struggle to understand pensions generally and the Triple Lock baffles millions. The survey of 1,295 UK adults aged 40 and above found: • 65% of UK adults aged 40 and above (two in three) cannot identify a definition of the Triple Lock (When given four options, 39% selected the incorrect definition of the three factors that make up the Triple Lock, while 26% admitted they did not know what the lock did)• 51% of over-40s think the UK’s pension system is too complicated• 50% do not think the government provides enough education and support to help people understand pension policy My Pension Expert said its study suggested that the majority of UK adults aged 40 and above did not know what the Triple Lock was. Only 35% identified the correct Triple Lock definition, that the State Pension would increase by the annual rate of inflation, average annual UK wage growth or 2.5% - whichever is largest. Almost two in five (39%) selected the incorrect definition of the three factors that make up the Triple Lock, while over a quarter (26%) of those surveyed were not sure what the Triple Lock is. Lily Megson, policy director at My Pension Expert, said: “That so few over-40s know precisely what the Triple Lock is ought to be a wake-up call to MPs. We need a shift towards greater consistency and clarity when it comes to pension policy – something that would help people plan effectively. This must then be supported through better access to financial education, guidance and advice for everyone. “Political parties should work more constructively together to deliver genuine cross-party collaboration on boosting financial literacy. Everyone should have access to the right tools to manage their finances and effectively prepare to achieve the retirement they deserve.” My Pension Expert was founded in 2010 and provides independent advice to UK consumers about their pension plans. • The market research was carried out between 8 and 13 May among 1,295 UK adults via an online survey by independent market research agency Opinium. The data sample of 1,295 UK adults was nationally representative and weighted by age, gender, region, employment status and political views.

Ignorance of Triple Lock is widespread - survey

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