The Triple Lock is maintained, but is it enough?
Andrew Tricker, 17 January 2026
Andrew Tricker, 17 January 2026
The Government’s decision to maintain the triple lock on the State Pension has been a significant topic of discussion, particularly with concerns around the rising cost of living and financial security for retirees.
While the triple lock guarantees that the State Pension will increase by the highest of inflation, average earnings growth or 2.5 per cent each year, questions remain about whether this is enough to provide retirees with a comfortable income in the long term.
The Happiness Research Institute, in a recent joint study with Legal and General, has shed light on the amount of income retirees need to achieve happiness.
According to the research, the happiest retirees have an average total monthly income of £1,700. To achieve this, assuming you retire at 65, you would need:
If you don’t meet these criteria, you may need to rely on other assets or income sources to supplement your retirement income.
The research studied 3,000 retirees and found that financial status was the most important factor influencing happiness in retirement.
This underscores the importance of having a solid retirement plan and sufficient income to avoid financial stress and worry, which can negatively impact quality of life.
The triple lock has been a crucial safety net for the State Pension, ensuring that pensioners are protected against inflation.
However, with rising inflation and increased cost-of-living pressures, many are questioning whether the triple lock will continue to be enough to secure the financial future of retirees.
While the annual rise in pensions under the triple lock is beneficial, the increasing demands of modern retirement, such as healthcare costs and longer life expectancy, may mean that the State Pension alone will not be sufficient for a comfortable retirement.
The key takeaway from the research is that financial security in retirement depends on more than just the State Pension.
Having additional income sources, such as private pensions, savings or investments, can make a significant difference in maintaining a high quality of life in retirement.
In fact, for those retiring with £1,700 a month, it is suggested that the income from the State Pension combined with a pension pot is likely to provide a stable foundation for retirement.
However, this income is based on current annuity rates and as market conditions fluctuate, the income you receive from your pension pot may change.
It is also important to note that, unlike the State Pension, income taken from a personal pension will not usually increase once it is in payment, meaning its real value can be eroded over time by inflation.
To ensure that your retirement income keeps pace with inflation, it's vital to consider investment options that rise with inflation, as annuities with fixed income may lose value over time.
With the full State Pension currently set at £11,973 annually and a £172,500 pension pot providing a comfortable monthly income, planning ahead is essential.
The research underscores the importance of saving early and building a diverse retirement portfolio.
Those who are nearing retirement age without adequate savings may find themselves relying more heavily on the State Pension, potentially leaving them financially vulnerable if inflation or unexpected expenses arise.
If you're concerned about your retirement income and want to explore how to better prepare for the future, our team is here to help.
Get in touch with Director, Andrew Tricker (andrewtricker@lfwm.co.uk) or your usual LFWM contact for tailored advice on creating a retirement plan that will help protect your wealth and ensure financial security for your future.
A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.
The information included in this article may be subject to changes in taxation following its publication. This article is intended for informational purposes only and does not constitute advice. The Financial Conduct Authority does not regulate estate planning.
