Keeping pensions 'triple lock' could push retirement age past life expectancy, warn MPs

State pension age will have to rise above male life expectancy in poorer areas of the country to pay for the increase in pension payments, MPs (BSE: MPSLTD.BO - news) have warned.

Paying for the "triple lock", which guarantees state pensions will always rise by at least 2.5%, means the age at which people can stop working will have to rise to sustain the increases.

According to figures from the Institute for Fiscal Studies, compiled for the Commons Work and Pensions Committee, pension age would have to rise to the age of 70.5 by 2060.

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This is higher than life expectancy for men in 26 areas of England, including Manchester, Leicester, East London and the Wirral, and 162 areas of Scotland.

It raises the prospect of men in poorer areas of the country working all their lives and never receiving their state pensions.

In contrast, those in wealthy neighbourhoods will continue to benefit from higher state pensions for many years after retirement - male life expectancy in the Westminster area of London is 92.9 years.

The committee's chairman, Labour MP Frank Field, said: "With (Other OTC: WWTH - news) the triple lock in place the only way state pension expenditure can be made sustainable is to keep raising the state pension age.

"This has the effect of excluding ever more people from the state pension altogether. Such people will disproportionately be from more deprived areas and manual occupations, while those benefiting most will be the relatively prosperous."

He said that the "triple lock" would have done its job of providing a decent minimum pension income for people by 2020 and should then be scrapped.

However, in a speech later today, the shadow work and pensions secretary will call on the Government to guarantee the "triple lock" beyond 2020.

Debbie Abrahams said: "The Chancellor must use this Budget to provide clairity on the issue of the triple lock, and follow Labour's lead by committing to the policy beyond 2020."

Pressure to scrap the pensions guarantee has increased. Pensioner incomes have doubled in the past two decades and critics argue that protecting increases at a time when the younger generation is struggling to get on the housing ladder is unfair.

Chancellor Philip Hammond indicated in his Autumn Statement that the "triple lock", which was introduced by David Cameron, will remain until 2020 but could be reviewed after that.