Myron Jobson, Senior Personal Finance Analyst at interactive investor, comments on voters' desire for pension consistency from the next government.
Consistency in pension policy emerged as the standout desire from investors, cited by over six in 10 (62%) of respondents to a poll of 1,000 visitors to interactive investor’s website on 17 June 2024. Specifically, an unchanged pension tax system is clearly important to investors, cited by over a quarter (27%) of the sample from a choice of seven financial policy areas, followed by maintaining the state pension triple lock (23%). Lifetime Allowances reassurances was cited by another 12% of the sample.
Tax cuts also ranked high with investors (21%), ahead of British ISA (10%), help for home buyers (7%), while only 1% of the sample cited the retail sale of NatWest shares.
When it comes to the issues that will have the biggest impact on the way people vote, some 57% believed that financial matters rank highest for this election, though some areas of the landscape are clearly more important than others. Almost a third (29%) put the economy highest from a list of nine options, and some 22% chose tax.
Myron Jobson, Senior Personal Finance Analyst, interactive investor:
It is difficult to know how to broach personal finance amid political uncertainty. It is important to remember that manifesto promises aren’t set in stone. Manifestos offer a glimpse of a party’s vision for governing, but various factors, such as the size of a governing majority, economic shocks, and geopolitical events, will determine whether or not the policies see the light of day.
The fate of a number of policies, including the British ISA and ‘pot for life’ pension, remain up in the air – and there is always scope for changes that could be beneficial or detrimental to personal finances. Regardless of what might happen, it is wise to take full advantage of tax allowances and reliefs if you can afford to...
Pension policy is emerging as a key battleground. The majority of respondents to our survey value consistency in the pension regime over change. Planning for retirement is difficult when key pension policy, like the triple lock, has seemingly become political football. We need a public confidence boost in state and private pensions, rather than erosion.
Good pension outcomes are reliant on a state pension to provide a basic income, along with workplace and private pensions, boosted by pension tax relief. The integrity of these three areas is crucial to rebuilding confidence and catalysing a savings culture in an ever-changing world.
✉️ Myron Jobson, interactive investor, 0750 801 4552
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