The triple lock has faced criticism in recent years as it has resulted in two significant consecutive increases for state pensioners.
Pensioners are set to receive £11.50 less per month than was originally expected due to the newly released earning figures dropping down to 4.5%. The UK state pension increases annually under the triple lock system, which is based on inflation, earnings or 2.5%, whichever is highest.
Today, the full new state pension pays a maximum of £11,502 a year. An increase by 5.7% would have lifted it by £655 to £12,157 a year. However, a 4.5% increase in earnings would only raise the new state pension by £517 to £12,019. This would result in millions receiving £138 less on the new state pension than they had anticipated, a monthly loss of £11.50.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, commented: "Wage growth remains robust, so it's highly likely that next month's figure will be the one used to uprate state pension under the triple lock. This month's figure comes in at 4.5% - way down on last month's 5.7%, but it has been affected by the payment of one-off bonuses in the NHS last year.
Long-term sickness causing economic inactivity among the working population remains a significant concern, affecting all age groups but predominantly those aged 50-64. The inability to work during this period can have devastating effects on individuals' ability to prepare for a decent retirement and manage day-to-day expenses.
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