Over 80% of voters want a pension and savings review from next government

Almost nine out of 10 (87 per cent) consumers said they have a strong desire for the next government to conduct a comprehensive review of the pensions and retirement savings system, a survey from PensionBee has found.

Support for a pensions and savings review was particularly strong (92 per cent) among those aged 35 to 44, a group who have consistently demonstrated low pension confidence over the past six months, according to PensionBee’s Retirement Confidence Index.

PensionBee’s survey also found that 61 per cent of respondents favoured maintaining the abolition of the lifetime allowance, a recent reversal in Labour’s plans, with over a third (37 per cent) of respondents suggesting that the policy encouraged saving for the future, while almost a quarter (24 per cent) said that any changes would directly impact their retirement planning.

Meanwhile, the Conservatives’ triple lock plus policy was favoured by older voters, as almost two thirds (65 per cent) of over 55s were aware of this policy and broadly understood its aims.

Indeed, the survey revealed that less than 10 per cent of over 55s were unaware of this policy, which was the lowest rate among all age groups.

On taxes and social care, 60 per cent of respondents said they would likely vote for a party that pledged to scrap inheritance tax.

NHS and social care funding was another priority for voters as almost 70 per cent of respondents stated that they were likely to vote for a party that committed to increased spending in this area, even at the expense of higher taxes.

However, the Green Party’s proposal for pension funds to divest from fossil fuel assets by 2030 highlighted a clear contrast to the preferences of customers in PensionBee’s default plan, with almost two thirds (65 per cent) favouring continued investment in fossil fuels.

These respondents cited profitability and the potential to drive change through annual general meeting votes as key reasons not to divest.

When asked about their feelings towards the future, 55 per cent of overall respondents said they felt optimistic about a change of government, while 23 per cent felt unsure and 21 per cent felt pessimistic about the change.

In particular, young savers were the most optimistic about a new government, with 68 per cent saying so, compared to those aged 65 and over who were the least likely to say the same.

PensionBee director of public affairs, Becky O’Connor, said that 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,” O’Connor added.

“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.”

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