Labour has pledged to uphold the state pension triple lock until 2025.
The commitment comes on the back of Office for National Statistics figures earlier this week showing that pensioner incomes rose significantly more than working population households since the financial crisis.
Pensioner incomes have risen 13 per cent since the financial crisis, compared to a decrease of 1.2 per cent for working households, the ONS says.
Shadow work and pensions secretary Debbie Abrahams says the figures show the importance of upholding pensioners’ income through mechanisms like the triple lock.
She says: “These figures demonstrate how important it is to maintain pensioners’ income if we are to work towards a more equal society.
“However, much more needs to be done. That’s why Labour has committed to maintaining the triple lock on the value of pensions until 2025. Only yesterday, I asked the Government whether they would match Labour’s commitment on the triple lock but they refused to do so. Only a Labour Government can build a more equal Britain.”
The Conservative government has committed to the triple lock only until the end of this parliament.
Aegon pensions director Steven Cameron says that the future of the state pension does need to take into account the impact of falling defined benefit payouts, however.
He says: “While the figures suggest there has never been a better time financially to be retired, today’s pensioner households are benefiting from two big factors. Firstly, many are receiving an income from generous defined benefit schemes. While these schemes will continue to pay out for many years to come, increasingly pensioners’ incomes will come from less generous defined contribution schemes.
“While auto-enrolment and the growth of defined contribution schemes go some way to offsetting the decline of DB, policy makers need to recognise that future pensioners may not be as well off as those today and this should be recognised, particularly when thinking about the future of the state pension.”