Steven Cameron, Pensions Director at Aegon, looks ahead to the appointment of the new Prime Minister and how this will impact peoples' pensions and personal finances.

The new Prime Minister will be announced on Monday 5^th September. The biggest question is what support will be offered to households and businesses facing often catastrophic increases in energy bills. However, both candidates have also talked of many other possible changes which could affect your personal finances, pensions or investments.

Steven Cameron, Aegon’s Pensions Director, comments:

The nation awaits news on how the Government will offer future support to consumers and businesses as the cost of fuel continues to skyrocket leading to some predicting inflation reaching 18% or more early next year. If the energy price cap continues to jump up every three months, the question is who will receive Government support and to what extent.

The alternative believed to be under consideration is to freeze energy prices with no further increase in the cap, supported by a funding deal between Government and energy companies, with the shortfall repaid longer term, possibly through income and other taxes. One key difference under this approach is it may avoid the headline inflation rate rising ever higher. While this may offer welcome reassurance to many, it could have implications for state benefits which are uprated in line with inflation, including the state pension.

Both candidates have in the past committed to retain the state pension triple lock until the next General Election. This grants an increase of the highest of consumer price inflation, national average earnings increases or 2.5% each year. Inflation is already in double figures and could rise further before the crucial figure for September is announced mid-October. 

Full release: What the new Prime Minister could mean for your pensions and personal finances

Media contact: Tess Gee, Aegon UK, Tess.Gee@aegon.co.uk