A recent survey by PensionBee highlights a strong desire (87%) among consumers for the incoming government to conduct a comprehensive review of the pensions and retirement savings system, as promised in Labour’s manifesto.
Support for this policy was particularly strong (9), by those aged to 44, a group that’s consistently demonstrated low pension confidence, according to PensionBee’s Retirement Confidence Index over the past 6 months.1
Lifetime Allowance and the Triple Lock
Maintaining the abolition of the Lifetime Allowance, a recent reversal in Labour’s plans was favoured by 61% of respondents. Over a third (37%) of respondents believed it encourages saving for the future, while almost a quarter (24%) noted that any changes would directly impact their retirement planning.
Meanwhile, the Conservatives’ ‘Triple Lock Plus’ policy, resonated with older voters, as almost two-thirds (65%) of over s were aware of this policy and broadly understood its aims. Less than 1_personal_allowance_rate of over s were unaware of the policy, the lowest rate among all age groups.
Taxes and social care
A significant proportion (6_personal_allowance_rate) of respondents indicated they would likely vote for a party pledging to scrap inheritance tax. Previous research from PensionBee found that while 3_personal_allowance_rate of over s would like to see the tax abolished completely, only _ni_rate of young savers (age -34) shared this sentiment, instead favouring a more means-tested approach.2
Prioritising the NHS and social care funding was highlighted as another priority, with almost 7_personal_allowance_rate of respondents stating they were likely to vote for a party that committed to increased spending in this area, even at the expense of higher taxes.
Sustainable investing and looking to the future
Meanwhile, the Green Party’s pledge for pension funds to divest from fossil fuel assets by 2030 indicated a clear contrast from the preference of customers in PensionBee’s default plan. Almost two thirds (65%) of customers in the Tailored plan favoured continued investment in fossil fuels, citing profitability and the potential to drive change through AGM votes as reasons not to divest.
When asked about their feelings towards the future, overall respondents felt optimistic about a change of government (_pension_release_tax_amount), while more people (2) felt unsure rather than pessimistic (_scot_intermediate_rate) about the change. Younger savers were the most optimistic (6) about a new government, whereas those aged 65+ were the least (_higher_rate) likely to express this sentiment.
Becky O’Connor, Director of Public Affairs at PensionBee, commented: “Pensions often face policy changes due to the costs involved for the Treasury in offering tax relief and the State Pension, but also because votes can be won or lost through adjustments to people’s retirement prospects.
Our survey clearly shows that voters are eager for meaningful reforms in some areas of the pension system and continuity in others, reflecting a broader need for financial security.
The ability for working people to build a decent pension is a key pillar of a well-functioning society and the incoming government has a significant opportunity to implement policies that foster confidence and trust among savers, ensuring a financially secure future for all.”
Appendix
Table 1: Should the new government conduct a pension and retirement savings review to improve the current UK pension system? You can select multiple answers.
Source: PensionBee, June 2024. A nationally representative sample of 1,000 UK adults, aged to 80. Numbers have been rounded.
Table 2: How important is it to you that the next government maintains the abolition of the Lifetime Allowance?
Source: PensionBee, June 2024. A nationally representative sample of 1,000 UK adults, aged to 80. Numbers have been rounded.
Table 3: Have you heard of the ‘Triple Lock Plus’ policy?
Source: PensionBee, June 2024. A nationally representative sample of 309 UK adults, aged to 80. Numbers have been rounded.
Table 4: Would you be likely to vote for a party in the upcoming election that pledges to scrap inheritance tax?
Source: PensionBee, June 2024. A nationally representative sample of 1,000 UK adults, aged to 80. Numbers have been rounded.
Table 5: Would you be likely to vote for a party in the upcoming election that pledges to spend more on the NHS and funding social care, even if it meant higher taxation? You can select multiple answers.
Source: PensionBee, June 2024. A nationally representative sample of 1,000 UK adults, aged to 80. Numbers have been rounded.
Table 6: Should your pension continue to invest in fossil fuel companies? Pick which one most closely aligns with your views.
Source: PensionBee, February 2024. A sample of 1,174 PensionBee customers from the Tailored Plan. Numbers have been rounded.
Table 7: Do you feel a change in government will bring you more optimism for the future?
Source: PensionBee, June 2024. A nationally representative sample of 1,000 UK adults, aged to 80. Numbers have been rounded.
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