Investors want consistency in pension policy from an incoming government as well as tax cuts, a poll has revealed.
Posted on Interactive Investor’s website this month (June 17), the poll explored the policy battlegrounds that matter most to investors.
Consistency in pension policy was the stand out desire from respondents, with 27 per cent specifically citing the desire for an unchanged pension tax system.
This was followed by maintaining the state pension triple lock (23 per cent) while lifetime allowances reassurances were cited by another 12 per cent.
Tax cuts also ranked high with investors (21 per cent), ahead of the British Isa and help for home buyers.
The poll also revealed that 57 per cent said financial matters ranked highest when it came to issues that would impact their vote.
Some 29 per cent chose the economy, while 22 per cent chose tax with some choosing immigration and health as their main policy concerns.
Myron Jobson, senior personal finance analyst at Interactive Investor, said: “Pension policy is emerging as a key battleground. The majority of respondents to our survey value consistency in the pension regime over change. Planning for retirement is difficult when key pension policy, like the triple lock, has seemingly become political football. We need a public confidence boost in state and private pensions, rather than erosion.
“Good pension outcomes are reliant on a state pension to provide a basic income, along with workplace and private pensions, boosted by pension tax relief. The integrity of these three areas is crucial to rebuilding confidence and catalysing a savings culture in an ever-changing world.”
Jobson added that while both major parties ruled out increasing the rate of major taxes, we were still on course for the “biggest tax burden in generations”.
“This is because both parties have said a freeze on tax thresholds will remain for three years if they win the election. The freeze in tax thresholds will claw more of our income into the taxman’s coffers as earnings increase over time. Known as fiscal drag, it is a sneaky tax grab that is set to hit those in the lowest income brackets the hardest,” he explained.
Alice Guy, head of pensions and savings at Interactive Investor said investors had “borne the brunt” of tax rises in the past couple of years, with capital gains tax bill “ballooning” and expected to grow more in the next few years.
She added: “With thresholds cut to the bone, it’s not surprising that investors will be looking at tax policy as they cast their votes this week.”
alina.khan@ft.com
