Britons are being warned that there is "even more onus to fund their own retirement" due to the rising cost of the state pension triple lock on the taxpayer.
Under the triple lock, payments have risen by more than 24 per cent in just three years to reach £230.25 per week for the 2025/26 tax year.
State pension payment rates rise every year either by the rate of inflation, average earnings or 2.5 per cent; whichever is highest.
This upcoming increase in April, driven by a 4.1 per cent rise based on average wage growth, brings the annual payment to £11,973.
Ed Monk, an associate director of Fidelity International, notes the dramatic impact, pointing out that the pension was "just £185.15 a week" in the 2022/23 tax year.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Expert are warning Britons that the "onus" is on them to fund their retirement
GETTY
The triple lock's "ratchet-like effect" has created a snowball effect on pension increases, consistently applying the highest available rise, the associate director claims.
Monk cited figures showing how £100 would grow to £180.70 by 2025/26 under the triple lock since
In comparison, if the same amount were raised by wages alone - the fastest rising of the component elements - it would only reach £158.13.
This accelerating growth pattern ensures the State Pension consistently outpaces its three underlying components, creating an ever-widening gap between the pension rate and its constituent measures.
The triple lock pension pay out could be under threatPAThe mounting cost of state pension payments is placing increasing pressure on taxpayers, with expenses reaching a peak of 5.06 per cent this year.
An ageing population means these costs are likely to rise even more rapidly as a greater proportion of Britons reach retirement age, according to Fidelity International.
"The cost of paying a higher State Pension needs to be met by taxpayers," explains Monk. "Our ageing population means that the cost is likely to rise even more quickly in the future.
"While projections suggest costs may decrease in coming years, Monk cautions that such predictions remain uncertain, being based on assumptions about future economic conditions.
With mounting pressure on the state pension system, analysts are highlighting that personal retirement planning has become increasingly crucial.
"There is even more onus on individuals to fund their own retirement," says Monk, highlighting the tax relief benefits available for pension contributions.
LATEST DEVELOPMENTS:
Britons are concerned about their retirement future
GETTYThose with company schemes can typically benefit from employer contributions, providing an additional boost to retirement savings.
To secure the full state pension, individuals need 35 complete years of National Insurance contributions by retirement age.
Employees typically have National Insurance automatically deducted from their pay, while self-employed individuals above certain earnings thresholds make contributions through self-assessment.
Monk advises: "Ensure you make maximum use of any help on offer to improve your retirement prospects."
