Steve Webb says its mainly women that rely on the state pension
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Former Pensions Minister, Steve Webb has told the GB New it is “essential” that Chancellor Rishi Sunak maintains a mechanism akin to triple lock on state pensions. He argued that this was needed in order to support retired women who are much more likely to be dependent solely on a state pension in later life. Under the current system, the value of UK pensions is predicted to rise by as much as eight percent with the sum calculated by the highest of average wages, inflation, or 2.5 percent.
Mr Webb told GB News last week: “There is a group of people and let’s call them women for short.
“On average it is women or are more likely to be wholly or largely dependent on the state pension.
“So in a way whatever [Rishi Sunak] does this year something like the triple lock that goes on restoring the state pension remains in my view essential.
“Because even after a decade of the triple lock we still have one of the lowest pensions given what people in work get in developed nations in the west.”
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It comes after a study by Barnett Waddingham has found women are far more likely to be wholly living off a state pension in retirement than retired men.
The research found 30 percent of women do not possess any private pension plans at all.
This has raised fears over the financial security of female retirees without private pensions who will be forced to rely only on the state pension.
State pensions are currently capped at a maximum of £179.60 per week.
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Amanda Latham, Policy and Strategy Lead at Barnett Waddingham commented on the impact of their findings on social media.
She said: “With recent analysis by the OBR predicting that state pensions could rise by as much as eight percent, the pensions triple lock has once again come under fire.
“Deemed as an outdated policy that is costly to the taxpayer, it’s very clear that there are holes in the system. Any policy that is significantly undermined by a lack of public support needs to be addressed.
“What’s crucial, however, is that any changes to state pensions consider the people whose livelihoods and retirements will face the biggest impact.
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“It is very possible that the biggest critics of the triple lock are the least likely to rely on a state pension in retirement – which as our research shows, is disproportionately women.”
“Within the pensions system as a whole, we should be thinking about how to create a more fair, robust and inclusive framework that gives everybody the best chance at building financial security for retirement in a targeted way,” added Ms Latham.
Earlier this month Chancellor Sunak hinted a change to the triple lock was under consideration
It came on the back of Office for Budget Responsibility forecasts that suggested a post-lockdown pay rise surge would see the state pension increase by eight percent next April.
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