What does the General Election mean for your pension?

What does the General Election mean for your pension?


Hi I’m Emma Wall and joining me today is Tom McPhail to talk about what the political parties want to do with your
pension. Hi Tom. Hello Emma So we’re nearing the general election
and we know more information now than we did before about what the different
major parties want to do to the state pension
we’ll start with what’s in the bag? So I think it’s true to say all the political
parties have learned from the 2017 general election they all recognise the
importance of pacifying this this group so on on state pensions first of all
they’ve all said they’re going to keep the triple lock – the guarantee to
raise the state pension by the highest of two and a half percent and inflation
and earnings.That’s gonna cost over the long-term
several billion pounds so that’s more money going to pensioners but I don’t
think any political party has the courage or the commitment to take that one
away. I think as interesting is the fact that we’ve already had the Conservatives
in previous administrations raising the state pension age it’s on its way up to
age 68. Well Labour have said they’re going to freeze the state pension age at
66 and that too will cost in the long term tens of billions of pounds that is
a very major commitment that hasn’t actually had a great deal of media
coverage so far. And the SNP have also said that they are fundamentally opposed
to any further increases to state pension age so so some clear water there
between between left and right of the political spectrum. Labour have also
committed to increase state pension for overseas pensioners – people that have
emigrated from the UK and that that too will cost several hundred million pounds
a year and finally the big one is the women against state pension inequality the
WASPI campaigners, where Labour have promised them around 58 billion pounds
of compensation it’s worth noting Labour are not alone on this the Liberal
Democrats the SNP the Greens everybody even the Brexit party have said that
they would look to make some similar kind of compensation to the WASPI women
the only ones the outliers on this other Cconservative party who repeatedly keeps
saying though we’re just not going to pay you any more money Broadly though positive for the state pension as you say everyone’s either
going for the triple lock or some sort of age freeze. If we have a look at other benefits in retirement however there’s a bit more of
a dichotomy between the parties isn’t there? Yep so again on the winter fuel
allowance both the Conservatives and Labour have said they’re going to keep
the winter fuel allowance now that’s not small beer that’s a couple of billion
pounds a year again Labour and the Conservatives have said they’ll keep the
free bus pass the others just haven’t mentioned it in their manifesto so
they’re not saying they’re going to get rid of it but they they’re just not
mentioning it and I think the other one worth picking out is the TV licence
where the the SNP for example said yes we’ll keep it. Labour said yes they’ll
keep it, the Conservatives has said yes we’ll keep it but they want the BBC to
pay for it so so there’s a bit of a distinction there and the outlier on
that one is the Brexit party that said they’d scrap the free TV licence
altogether for the over 75 So then it looks like for people in retirement
they’re being reasonably looked after by the major political parties obviously
they’re not stupid that is the main voting population. What about then if we
look at working pensions – workplace pensions? So again on workplace
pensions we’ve had a lot of publicity recently about what’s called the annual
allowance taper the particular problems affected doctors that’s preventing them
doing overtime and preventing work getting done in the NHS and both the
Conservatives and Labor have committed to review this it’s worth pointing out
the Conservatives have had several years when they could have done something
about it and indeed the problem is one of their own making because they
introduced the annual allowance taper but they promised to fix that the
Conservatives have also promised to address this what’s called the net pay
anomaly this problem where low paid workers are not getting
tax relief on their private pensions Labour have said nothing more about
pension taxation but I think it’s worth highlighting the fact that elsewhere
they’re looking at increasing taxes on higher earners the more tax you pay the
more tax relief you get on your pensions so I find it hard to believe that if we
have a Labour government and they increased taxes they won’t then look at
ways to cut back on the tax relief given to higher earners And historically have done
that in the past haven’t they it was a Labour Chancellor that did just that? Yes indeed so we’d expect to see more in that area for the rest I think it’s
interesting the parties have been pretty quiet on pension taxation there’s a lot
of unfinished business there a lot of anomalies in the system but for
now they’re just leaving that well unknown probably because they don’t want
to risk upsetting anybody Tom thank you very much Thank you

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