Tim Middleton, Director of Policy and External Affairs at the Pensions Management Institute, said: "We note that the Conservatives’ ‘Triple Lock Plus’ will provide security to those who are already past State Pension Age, but are frustrated that there was little new announced concerning those who are currently still in work. It would have been encouraging, for example, to have included further reforms to auto enrolment. It is also a little surprising that there was no mention of the Lifetime Provider."
Becky O’Connor, Director of Public Affairs at PensionBee, commented: “The Triple Lock Plus seeks to raise the income tax threshold for pensioners, ensuring that even with an increased State Pension, it remains below the taxable income level.
“Over 60% of people aged 65+ paid income tax last year, as the tax free allowance for pensioners has been cut in real terms, leaving many older people worse off in retirement. To preserve the State Pension, some form of index-linking is necessary as without decent and reliable rises to the State Pension, many retired households could lose a vital safety net.
“However, the State Pension is relevant not only for today’s pensioners but also for future generations. An enhanced Triple Lock policy raises the question of whether a continually rising State Pension age may be required to manage escalating costs.”
“The Conservatives have recognised the clear potential in the benefits of people having a lifetime pension provider so they don’t lose old, valuable pensions as they move from employer to employer.
"The reality is people change jobs, pensions get left behind, some are forgotten and retirements suffer so having all of the pensions someone acquires in one place makes sense."
“This concept could be popular and relatively easy to introduce, ultimately allowing people to take greater control of their long-term finances, so it’s disappointing that further details on the next steps of this process were not outlined.”
David Lane, Chief Executive of TPT Retirement Solutions, said: “The Triple Lock Plus pledge in the Conservative Manifesto could prove popular with some older voters. Our research found that more than half of working people are worried about the cost of retirement, and 63% of those aged 55 or older want the next Government to maintain the triple lock. Many people are struggling to save enough for retirement and will rely on the state pension. If this policy isn’t introduced and income tax thresholds remain frozen, pensioners are expected to start paying income tax on their state pension in 2027. Anyone who depends on the state pension for their retirement may find it difficult to cope if they have to start paying this tax.”
Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group said: “The recent proposals to introduce a ‘triple lock plus’ were firmly aimed at pensioners, while the NI cut, which has emerged as one of the flagship policies for from the manifesto, has those of working age centre stage.
“If introduced it would represent a third National Insurance (NI) cut in recent years and take the headline rate to 6%, offering some relief to squeezed monthly budgets. Notionally NI is intended to fund the state pension, so any cut adds to the long-running question over how it is funded. The reality is more complex and so long as the government of the day is committed to the state pension, the money will be found.
“Both the Conservatives and Labour appear likely to keep the current freeze on tax thresholds and the personal allowance for workers in place. Therefore, many will find themselves paying more tax as wages rise, lessening any NI cut glow for individuals while offering public finances some protection.”
Simon Kew, Head of Market Engagement at Broadstone: He comments: “There were no surprises on pensions reform in the Conservative manifesto with the previous commitment to a ‘Triple Lock Plus’ to protect the State Pension from being dragged into income tax reaffirmed.
“The proposed National Insurance cut for the self-employed will support their financial health and it is positive that this will not impact their State Pension, but we would have liked to see further detail of a plan to boost adequate pension saving among this group.
“For the pensions sector it appears to be a continuity manifesto with myriad existing reforms still going through the legislative process.”
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