The next Prime Minister should address the sustainability challenge posed by the triple lock while continuing the progress made on wider pensions reform, industry figures have stated.

Prime Minister, Keir Starmer, announced plans to resign yesterday, with Makerfield MP and former Greater Manchester Mayor, Andy Burnham, seen as the favourite to replace him.

Isio partner, Stewart Hastie, said the resignation created uncertainty when the pensions industry was in the midst of a major programme of reform, with a Cabinet reshuffle likely to bring a new Pensions Minister.

“The key priority, however, should be ensuring that progress on existing reforms is not lost as the industry needs continuity to ensure the important work already underway is delivered successfully,” he continued.

“There will now be questions over whether any change in leadership could affect future policy decisions, including pensions tax relief, how the government plans to address the long-term cost of the state pension, the future of the triple lock, and its response to the State Pension Age Review.”

Hastie added that there could be renewed debate around the role pension schemes should play in supporting investment in UK assets, while attention was also expected to turn to how the government responds to the findings of the Pensions Commission, especially if it recommends increasing automatic enrolment contribution rates.

“Pensions policy requires long-term thinking and consistency, and pension schemes, employers and savers need confidence that reforms will be seen through and that decisions are being made with long-term retirement outcomes in mind,” he concluded.

Meanwhile, Aegon pensions director, Steven Cameron, called on the next Prime Minister to address the long-term sustainability of the state pension triple lock.

He warned that the issue cannot continue to be sidestepped, and growing scrutiny of state pension funding should prompt a wider debate about the future of the triple lock.

“While avoided by successive governments, politicians across the spectrum as well as think tanks are now increasingly questioning its long-term future and today’s political change creates the opportunity for an open and honest debate,” Cameron said.

“Importantly, it’s not a simple case of keep it or scrap it – there are other options worthy of proper consideration.

“Recent comments from Burnham, reaffirming he if Prime Minister, would retain support for the triple lock, may provide short-term reassurance to today’s pensioners.

“But what’s needed from all major political party leaders is a longer-term vision for how the state pension can remain fair, affordable, and sustainable not for the next three years but for the next 30 years and beyond.

“With an ageing population and fewer workers supporting more pensioners, the current system is already creaking at the seams and without reform, the triple lock will place an unprecedented burden on working-age taxpayers, raising serious questions around intergenerational fairness.”

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