What can we expect to change post-Election?

We have no crystal balls here, so we can only speculate what might be in store for pension schemes post-election.  By the time this is published we will know the result of the election, so what’s been muted so far?

Conservatives have pledged a pension tax guarantee. Maintaining the 25% tax-free lump sum enjoyed at retirement and the marginal rate of tax relief on pension contributions paid in. They’ve also said they will continue to protect employer contributions from National Insurance. Labours only comment on tax is that they have confirmed that they are not looking to reintroduce the lifetime allowance. Whilst the Green Party are looking to equalise pension tax relief to basic rate! –  using the tax saved to fund the elderly and disabled.

All seem to be aligned on prioritising retirement security and outcomes. The Reform UK party cited the current system as “riddled with complexity”.

Whilst all appear committed to maintaining the Triple Lock. The conservatives have gone one step further with their Triple Lock Plus (the personal allowance would be guaranteed to rise by the highest out of inflation, average earnings, or 2.5%.)  The Green party have said they would follow a similar policy.

The Liberal Democrats have said they hope to end the gender pension gap and help working age carers and the gig economy to properly save for retirement.

Pension Age reported:

“The next government must prioritise increasing minimum auto-enrolment contributions to 12 per cent during the next decade, former Financial Secretary and Chief Secretary to the Treasury, Stephen Timms, has said. Speaking at the International Longevity Centre (ILC) Retirement Income Summit, Timms said there was an urgent need to plan for increasing minimum contributions to 12 per cent during the next decade – and to explain to workers why this was necessary”.

Our hope… stability in continuity in pension policy, and continued tax relief for savers, with changes only to improve member outcomes. Watch this space!