Taxpayers will be forced to pay an extra £1,200 over the next five years if I thinknot triple lock remains in place, according to experts.
A study by wealth management firm Quilter explains how this commitment will increase the tax a burden on millions of people and potentially increase the Pension age.
Under the triple lock, state pension payment Rates increase each year based on the inflation rate, average wage, or 2.5%, whichever is higher.
In the run-up to the last general election, Prime Minister Keir Starmer promised to maintain the payment method if Labour won the keys to 10 Downing Street.
According to figures from the Office for Budget Responsibility (OBR), the cost of the state pension is £124 billion in the 2023-24 tax year.
This spending is expected to rise to £158bn by 2028-29 – a staggering increase of £34bn.
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Both political parties have vowed to keep the triple lock in place if they win power. PennsylvaniaAn analysis by Quilter found that this equates to £1,176 in extra tax for the UK’s 28.9 million working-age taxpayers.
Britons have already been forced to cope with the cost of living crisis and the highest tax burden since the Second World War.
Over the years, pension spending has grown from 2% of gross domestic product (GDP) in the early 1950s to more than 7% in 2024.
Britain has an ageing and unhealthy population, and baby boomers, born between 1946 and 1964, are expected to add further to the pension bill.
Experts from the International Longevity Centre have said that the retirement age will have to be raised to 71 to maintain the current ratio of workers to retirees.
Currently, the state pension is 66 years old and is due to increase to 67 by 2028 and 68 by the mid-2040s.
John O’Connell, chief executive of the TaxPayers’ Alliance, implored the government to tackle triple lock reform.
He said: “With the triple lock essentially ensuring the long-term unaffordability of the pension system, taxpayers are continually being forced to support something they themselves will likely never receive.
“If the new government wants to improve public services while reducing the burden on workers, reforming the triple lock would be an excellent place to start.
Caroline Abrahams, director of Age UK, added: “Not being able to claim your state pension until you are 67 or over is […] a pretty terrifying prospect for anyone in this age group who is out of work, with little hope of finding one again, or who has been forced to leave their job because of ill health or because they have caring responsibilities for a sick partner or parent.
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“In many ways, these people constitute the new precariat of our society and it is essential that policy makers understand their plight and take steps to address it.”
Earlier this year, pensioners received an 8.5% increase under the triple lock, which took the new full payment to £221.20 a week.
By 2025, the Bank of England is forecasting a 4% increase in the state pension rate.
GB News has contacted the Treasury for comment.