Following the manifestos release in preparation for the General Election on 4 July it’s clear that there are no big changes currently on the cards for pensions. The Conservative, Labour and Liberal Democrats manifestos are promising to retain the Triple Lock for the State Pension, and in excellent news for wealthier savers no party has plans to reintroduce the controversial pensions lifetime allowance. 

Conservatives

The Conservatives plan to upgrade from the Triple Lock to the Triple Lock Plus. The traditional Triple Lock promises that the amount of the Basic State Pension will increase each year in line with the highest of the rate of inflation, average wage growth or 2.5%. With the full State Pension (for those eligible) currently at £11,502 annually, this is teetering closer to the annual personal allowance of £12,570. As this personal allowance is frozen until 2028, lots of unsuspecting pensioners who rely solely on the State Pension will find themselves pushed into paying income tax in the years ahead. Not under the Triple Lock Plus, where the annual personal allowance for pensioners will also grow in line with the highest of the rate of inflation, average wage growth or 2.5%.

Labour

Aside from maintaining the traditional Triple Lock, Labour have not made many pensions commitments, other than promising to complete a pensions review to “improve security in retirement” and “increase productive investment in the UK economy”.  We expect that this will result in some changes in the future, but these are as yet unclear.

Liberal Democrats

In addition to their pledge to retain the Triple Lock, the Liberal Democrats have also promised to ensure that women born in the 1950s - the so called Waspi women - are fairly treated and properly compensated.

It seems that there aren’t any radical changes proposed in the short term to pensions in the UK. For now, we’ll just have to wait and see how the election unfolds.