The ending of the ‘triple lock’ on UK state pensions is intended to reduce the pension burden on public sector spending, and consumers may turn to private pensions. UK workers approaching retirement are likely to end up with a lower post-retirement income, though, and pension providers should be emphasizing the importance of private savings to sustain lifestyles post work. While saving is difficult for consumers at present, they need to be as proactive as possible in contributing to private pensions, reveals GlobalData, a leading intelligence and productivity platform.

As of 2025, the state pension represented roughly 5% of UK GDP, according to government figures. This proportion was set to rise further due to the triple lock guaranteeing an annual increase in line with the Consumer Prices Index (CPI) inflation, wage growth, or a fixed 2.5%—whichever is highest. The wage growth element is set to be removed from 2030.

The wage growth element of the triple lock was used four times between 2012 (when it came into force) and 2025. Over the same period, the 2.5% minimum percentage was used three times, while CPI inflation was used six times (the triple lock was suspended during the 2022-23 financial year due to the COVID-19 pandemic. The wage growth factor was used for 2025–26, as the 4.1% wage growth rate exceeded both the 2.5% minimum and the 1.7% CPI rate.

Ben Carey-Evans, Senior Insurance Analyst at GlobalData, comments: “GlobalData’s 2025 UK Insurance Consumer Survey* found that only 50.4% of non-retired people felt that their retirement income would be enough to cover their living expenses. Any reduction in the potential size of the state pension pot will only damage consumer optimism about retirement.”

UK consumers are concerned about their pensions and retirement lifestyles. However, the government has to balance these concerns against continued growth in the state pension pot, which accounts for a rising proportion of overall public spending. The removal of the triple lock will save the government a considerable amount annually, but this move is unlikely to be the last step taken to reduce spending on UK state pensions.

Carey-Evans concludes: “Consumers with disposable income should consider opening a private pension or increasing their contributions, as further steps to reduce the size of the overall state pension seem likely. Pension providers should use this as an opportunity to encourage consumers to save. The state pension is already not enough for many people to live on, and further reductions to it are likely before many working people retire.”

*GlobalData’s 2025 UK Insurance Consumer Survey was conducted in Q3 2025 and had 4,000 responses