If you have reached the grand old state retirement age (currently 67), the way your income escalates (or goes up for inflation) every year is currently guaranteed by something called the “triple-lock”. Basically, it means your state pension will be increased every year by the higher of 2.5%, price inflation or average wage increases.
Now then, wages this year have pretty much dropped 80% across the board (due to furlough), therefore if the triple lock remains in place, it would be a very good guess that wage inflation next year will be around 20%, as this will definitely be higher than inflation (currently 0.9%) or 2.5% this would add around £20billion to the cost of state pensions!
Total Government spending on everything is normally around £820 billion (including £100billion on the state pension) so it does not take a rocket scientist to work out the triple lock will soon be under very real threat in the face of a huge “artificial” rise in wages!! Another reason why you cant rely on the state pension and should take advice immediately to ensure your own Financial Fortress!