General Election win opens generation gap

Halfpoint - stock.adobe.com

The top policy priorities relate to the State Pension, retirement income needs, social care and getting on the property ladder. However, stark differences between the priorities of different age groups highlighted an intergenerational balance challenge facing the new Labour administration, according to the consumer research carried out for Aegon UK by Opinium.

When asked to pick from a range of options, three in ten people called for long-term clarity around the State Pension and the triple lock to be a priority. Aegon reported that – unsurprisingly – a whopping 45 per cent of those over 60 saw it as a priority, while just 26 per cent of 50-somethings went for this option, with only 21 per cent of under-50s picking it.

Meanwhile, almost a quarter of those surveyed prioritised raising the personal allowance for state pensioners, in line with the Conservative’s “triple lock-plus” proposal. According to Aegon, this reflects ongoing concerns that even those with no income above the new State Pension level could face an income tax bill in the next two or three years because of projected State Pension increases taking them above the frozen personal allowance threshold.

A similar age pattern emerged here, with 45 per cent of 60-plus people plumping for this, compared to 17 per cent of those in their 50s, and just 12 per cent of under 50s.

The top priority for the under-50s group – 29 per cent –  was “new initiatives to help me/younger generations get on the property ladder”. Only 14 per cent of over-60s went for this option, and those aged 50 to 59 were in the middle, as 20 per cent backed this as a priority.

Steven Cameron, pensions director at Aegon, says: “This fresh research shows that the new Labour Government faces a tricky balancing act in meeting financial priority expectations of different generations of people across the UK.

“It’s clear the over-60s have very different priorities for the new government compared to the under-50s’ wish list.

“The 60-plus cohort prioritised long-term clarity around the State Pension and the personal allowance for state pensioners to be raised to avoid those with no income other than the new State Pension ending up with a tax bill.

“While the incoming government has announced a Pension Schemes Bill and a pensions review, neither focusses on the state pension.

“The under-50s top priority was helping them or younger generations get on the property ladder, something Labour has highlighted as an important focus in their first days in government.

“Interestingly, for the under-50s and those in the first decade of their second 50, ‘pension dashboards’ to find and view all pensions securely, in one place, was a policy priority.

“We hope the new government will endorse the current timeline, which would see dashboards become available to the public in 2026.”