Pension peril: is it time to unpick the triple lock? | Letters
Readers are divided on whether the triple lock should stay or go The article about whether the pensions triple lock should be ditched omits several key facts ( ‘Costing billions’: is the pensions triple lock a lifeline or simply unaffordable?, 12 September ). The triple lock was introduced in 2010 to attempt to reinstate the value of the state pension relative to average earnings. The new state…
The article discusses the ongoing debate surrounding the triple lock pension policy in the UK. This policy, introduced in 2010, aims to maintain the value of state pensions relative to average earnings. As of now, the new state pension is £12,547 per year, while older pensioners receive a basic £9,615. Both figures fall short of the European average of over £13,800 per year. Notably, the UK median wage stands at over £39,000 annually.
Critics argue that pensioners solely drain resources from the economy without providing any return. However, this viewpoint overlooks the fact that pensioners inject money into the local economy, generating tax revenues through VAT and income tax for younger individuals dependent on pensioner money for employment. Those better-off pensioners also contribute their share through income tax, with the personal tax-free allowance set at £12,570, just £23 above the new state pension income.
The article highlights the need for a more comprehensive discussion on the triple lock's affordability and its impact on the overall economy.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
