Keir Starmer & The State Pension

As we wrap up the summer events, our new leader, Keir Starmer has caused quite a stir as he whitters on about the black hole left by the Tories, and many of you are asking:

What will he do with my pension?

What about the State Pension?

While I can only offer my opinion, given his recent policy moves, it's anyone's guess what might happen next! However, considering he's already upset a few groups, it would be risky for him to make any drastic changes to pensions at this stage.

That being said, with the Autumn Budget approaching, it will be interesting to see what Labour introduces. I wouldn’t hold my breath for tax breaks! Two major topics frequently discussed are potential changes to the triple lock or an increase in the state pension age, given that the cost of the State Pension is expected to exceed 6% of GDP by the late 2040s.

Currently, the UK State Pension age is 66, but it will rise to 68 by 2044-46, impacting those born after April 1977. However, any decisions to speed up this change were delayed before the recent election, with another review expected after the next parliament. Independent reports have suggested various timelines for this increase, with concerns about affordability even hinting at further rises by 2050.

Ultimately, this highlights the importance of encouraging you, your children, and even your grandchildren to start saving more sooner rather than later!

Many of you are concerned about what changes might come to personal pensions, particularly regarding the 25% tax-free cash. However, I’d be surprised if there are any major alterations to this benefit.

Even if any changes were introduced, there would likely be a transition period, allowing you time to adjust based on the current rules. If anything, I’d expect them to reinstate the Lifetime Allowance cap rather than focus on the tax-free cash.

In the meantime, focus on what you can control, rather than worrying about things you cant!