Who will miss out on the state pension triple lock?

Hundreds of thousands of retirees do not have their state pension payments uprated with the triple lock, and will miss out on the 4.1% rise next month.

The full new state pension will increase to £230.30 a week (£11,975 a year) on 6 April 2025, thanks to the triple lock. Meanwhile, the “old” state pension – known as the basic state pension – will also rise by 4.1%, taking the full annual amount to £9,175.

The triple lock guarantees that state pensions will be boosted each year by inflation, wage growth, or 2.5% – whichever figure is highest.

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However, many pensioners will not get to enjoy this uplift to their income, due to where they live or the type of pension they have.

Almost half a million retirees live with “frozen” state pensions, which do not get increased at all, while thousands of others get a payout from the government that is only uprated with inflation.

We explain who misses out on the state pension triple lock.

1. Retirees living abroad in certain countries

British pensioners living abroad in countries like Australia, Canada, India, New Zealand and South Africa do not have their state pensions increased with the triple lock.

This “frozen state pension” policy affects about 450,000 pensioners, according to End Frozen Pensions. The campaign group says the policy is an “injustice” and that those who move abroad to “frozen” countries “should not have to face financial hardship in their retirement”.

William Cooper, marketing director at the insurance firm William Russell, comments: “The UK state pension can be paid to expat pensioners regardless of where they live, but it’s crucial to understand how living abroad may affect the amount and any potential increases.

“If you reside in certain countries, typically those with a reciprocal social security agreement with the UK, your state pension may still increase each year as it would if you were in the UK. However, in other countries, the pension may be ‘frozen’ at the rate it was first paid.”

British citizens who move to a country in the European Economic Area or countries like Switzerland, the USA or Jamaica do receive annual increases to their state pension.

Tom Selby, director of public policy at the investment platform AJ Bell, notes the “frozen state pension” policy “has been maintained by successive governments and is unlikely to change”. He adds that if you retire to a country like Australia or Canada, the absence of the triple lock “could have a massive impact on retirement income”.

Research by the investment platform Interactive Investor last year revealed that someone who retired abroad to a “frozen country” received just £2,946 a year on average from their UK state pension. This compared to £10,099 for a pensioner living in the UK.

A petition to end “frozen pensions” has attracted more than 173,000 signatures.

2. Pensioners with additional state pension

The triple lock pledge only applies to the old basic state pension and the new state pension.

This means that if you reached state pension age before April 2016 some of the state pension you receive may not be covered by the triple lock. This is because you may have additional state pension, which is an extra amount of money paid on top of your basic state pension.

Sarah Pennells, consumer finance specialist at Royal London, explains: “Only the core part of the state pension rises in line with the triple lock. If you’re entitled to any additional state pension, such as SERPS or the state second pension, that only rises by inflation, as measured by the Consumer Price Index (or CPI).”

You may receive additional state pension if you’re a man born before 6 April 1951, or a woman born before 6 April 1953. You might also inherit it from your partner.

Pennells adds: “For some people, the additional state pension could form a significant part of their state pension income. They will see a rise in their pension each year, but the SERPS or state second pension element will only rise by inflation, and not by the highest of inflation (as measured by the CPI), earnings growth or 2.5%.”

3. People who defer their state pension

The third group of people who don’t benefit from the triple lock on their whole state pension are those who defer their state pension.

“If you choose not to take your state pension when you’re entitled to, but delay it (or “defer” as it’s sometimes called), the triple lock doesn’t apply to any extra money you receive by deferring – but it does still apply to the ‘standard’ state pension amount,” comments Pennells.

Your state pension increases by 5.8% for every full year you delay taking it, if you reached or will reach state pension age on or after 6 April 2016.

Deferring can be a good option for people who don’t need the income immediately, perhaps because they are still working or have other sources of cash. The 5.8% uplift for every year you delay could make financial sense depending on how long you live in retirement.

However, just remember that the extra amount you get because you deferred will only increase each year in line with CPI inflation, and won’t be protected by the triple lock.