Ahead of tomorrow’s Budget, savers and those approaching retirement have given the Chancellor the thumbs up over his pension and ISA reforms. He is being urged to go further this Wednesday in a move that could decide the outcome of the election.
We asked more than 2,000 people across the UK which party they think does most for savers. The Conservatives come top (46%) among voters aged 35 and over with Labour in second (32%).
Following reforms to pensions and ISAs, George Osborne has been urged to do more on Wednesday and extend new pension freedoms to those who have already purchased an annuity as well as remove tax penalties on people who pass their ISA to their children.
Savers could hold the keys to Downing Street, with over half of those polled (54%) saying more policies to support saving and investing will influence their voting decision. 70% of first-time voters and young people say that it will be a factor as they decide which party to vote for.
The research was carried out as part of our quarterly Tackling the Savings Gap investigation. It also found that 58% of over 65s believing that the Conservatives are the party most on the side of savers.
The personal ISA allowance was raised from £11,880 to £15,000 last year and will rise again on 6th April to £15,240. From next month, pension savers can access their money whenever they wish to and will be able to withdraw from their pension without limits.
True Potential managing partner David Harrison, said: “These results should be a boost to Chancellor ahead of his final Budget of this parliament on Wednesday. They are also evidence that what he has done so far is working. Savers want flexibility and freedom so I welcome any measures that encourage saving and remove complexity. I hope that we see more of that on Wednesday and after May’s election.
“Some people in the industry fear these changes, especially annuity companies and those who wish to constrain freedom and choice. Direct contribution pension schemes and ISAs are almost entirely funded by the individual. That is why it is right that the Government treats them like the adults they are and gives them as much freedom and flexibility over their own money as possible.
“I urge George Osborne to use this final opportunity before the election to be even more bold and increase the annual ISA allowance closer to £25,000. He should also make sure people who are saddled with annuities have the option to cash them in and benefit from April’s pension freedoms.”
The Chancellor will be outlining his Budget tomorrow morning from 12:30pm. Follow us on Twitter @TruePotential_ to stay up-to-date with the latest announcements.