From April, pensioners are set to see an 8.5 per cent hike to their payments but questions have been raised as to how “sustainable” the benefit will be going forward.

Taxpayers pay for the current generation of state pension recipients through National Insurance, which was recently slashed by the Government to secure votes before the General Election kicks off this year.

Steven Cameron, the pensions director at Aegon, noted that Britons are becoming increasingly optimistic about their finances but older households are more likely to be concerned about the future.

He explained: “Those on a fixed income continue to face a tricky time ahead, and that includes many pensioners despite the inflation busting 8.5 per cent rise in the state pension from this April due to the triple lock.

“The elephant in the room remains whether the triple lock is sustainable long term. The state pension is a lifeline to millions but is very costly for today’s workers to fund from their National Insurance.

“We urge all political parties to make their state pension intentions clear ahead of the General Election. It could have a major influence over voting preferences.”

According to a recent survey of 2,000 adults carried out by Aegon, 38 per cent are feeling negative about their finances going into 2024, with 52 per cent feeling positive.

Overall, males are 11 per cent more likely to be feeling good about their personal finances than females despite the cost of living crisis.