There is substantial support among voters for the next government to conduct a comprehensive pension and savings review, according to a poll by online pension provider PensionBee.
The survey of 1,000 UK adults in June 2024 found that 87 percent of consumers want the system to be reviewed.
Support for this was particularly strong among people aged 35 to 44, with 92 percent in favour of a review. This age group has consistently demonstrated low pension confidence over the past six months, according to PensionBee’s Retirement Confidence Index.
LTA and triple lock
Three-fifths (61 percent) of survey respondents do not want to see the Lifetime Allowance (LTA) reinstated by the next government after it was abolished in the 2023 Budget. Labour had originally planned to bring back the LTA if elected, but has now abandoned the plan.
The Conservative party’s ‘triple lock plus’ policy resonated with older voters, the survey found, with 65 percent of people over 55 aware of this policy and agreeing that they broadly understood its aims.
Sixty percent of survey respondents said they would be likely to vote for a party pledging to scrap inheritance tax. Previous research from PensionBee found that while 30 percent of over 55s would like to see the tax abolished completely, only 15 percent of young savers (aged 18-34) agreed. Younger voters preferred a more means-tested approach.
Prioritising the NHS and social care funding was another priority, with almost 70 percent of respondents agreeing they were likely to vote for a party that committed to increased spending in this area, even if it meant higher taxes.
Pensions and fossil fuels
The Green party’s pledge for pension funds to divest from fossil fuel assets by 2030 contrasted with the preference of customers in PensionBee’s default plan. Almost two thirds (65 percent) of customers in the tailored plan favoured continued investment in fossil fuels, citing profitability and the potential to drive change through annual general meeting votes as reasons to keep investing.
When asked about their feelings towards the future, overall respondents felt optimistic about a change of government (55 percent), while more people (23 percent) felt unsure rather than pessimistic (21 percent) about the change. Younger savers were the most optimistic (68 percent) about a new government, whereas those aged 65+ were the least (40 percent) likely to express this sentiment.
Becky O’Connor, director of public affairs at PensionBee, said: “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.”
