Pensions after the General Election

Following Rishi Sunak’s announcement of a General Election on July 4, 2024, the parties’ manifestos are still awaited but what could be the next Government’s pension priorities?

There are several areas of uncertainty which we hope will be addressed as soon as possible by the incoming Government:

• The extension of auto-enrolment by the lowering of the minimum age to 18 and removal of the lower qualifying earnings limit.
• It seems there has been an indication from Labour that the Mansion House reforms are likely to be maintained if there is a change of Government.
• Labour has stated it would reinstate the lifetime allowance. This would add more unwelcome complexity.
• Both main parties have committed to keeping the State pension triple lock, ensuring the State pension increases by the highest of average earnings growth, inflation or 2.5 per cent.
• There may be a possible acceleration in retirement age. Current plans are for an increase to 67 by 2028 and 68 by 2046.

Hopefully, any changes to pensions policy will be kept simple. Pensions are vehicles for long-term financial planning and stability is key.