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Will pensioners be better off under Labour or the Conservatives after the 2024 General Election?

From the State Pension triple lock to your pension allowances, who’s better for pensioners in the 2024 General Election – Labour or the Conservatives? We take a closer look.
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Important information - This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Both Labour and the Conservatives have promised to maintain the State Pension triple lock early in the campaign, before the Conservatives then upped the ante with the ‘triple lock plus’. This promises to raise the personal allowance above the level of the full new State Pension so you don’t pay income tax on it.

It’s a blockbusting pledge that Labour haven’t matched so far. However, the upshot is that no matter who gets in power, it looks like pensioners can rely on the triple lock for the next electoral cycle.

But what else have the two main parties promised pensioners, and how can you secure your retirement in 2024 and beyond?

This article isn’t personal advice. If you’re not sure what’s right for you, ask for financial advice.

Pension and tax rules can change, and any benefit depends on individual circumstances. Remember, you can’t usually take money out of a pension until at least age 55 (rising to 57 from 2028).

Helen Morrissey, Head of Retirement Analysis, discusses Labour's plans for pensions.

What else have Labour and the Conservatives pledged in the 2024 General Election?

In a further boost for pension savers, the Conservative party also promised not to introduce any further pension taxes – tax relief on pension contributions would remain untouched and so would tax-free cash.

It’s a promise that delivers much needed certainty for prospective retirees as they can make full use of their allowances within their Self Invested Personal Pension (SIPP) and plan without the fear of tax tinkering affecting their pension planning. Although, of course, this is never guaranteed.

So far, Labour haven’t made any similar pledges. This has led to rumours they could potentially scale back tax relief.

However, the rumours rumbling in the background are based on comments made by Shadow Chancellor of the Exchequer Rachel Reeves several years ago.

Back then, she advocated for a flat rate pension tax relief of around 33%. Labour has since said such a move isn’t Labour pension policy, though there is always uncertainty as to what could happen in future.

Another key difference between the parties was around the lifetime allowance (LTA).

The Conservatives abolished the LTA in the 2023 Spring Budget, only for Labour to swiftly say they’d reinstate it should they get into power.

The latest on the LTA from Labour is that they’ve decided against reintroducing it, in the interests of providing certainty. This has been greeted with real relief by pension savers who can now put a long-term plan in place.

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4 ways to help secure your retirement in 2024 and beyond


Get a State Pension forecast

Make sure you get the most from your State Pension by getting a forecast.

This will show you how much you’re on track to receive and highlight any gaps in your National Insurance record that you can try and fill.

You can then plan how this will complement your personal pension, like a SIPP.


Use your pension allowances

The news that Labour aren’t planning to reinstate the LTA will be music to the ears of anyone who would’ve had a looming liability in their pension or SIPP.

You can now make full use of allowances like the pension annual allowance, which stands at £60,000 for most people, to continue to build your retirement income.


Check you’re on track with saving enough for retirement

Try our pension calculator to get an idea of how much you might need to save into a pension to get the income you’re aiming for in retirement.

And if you're not on track, see what the difference would be if you increased your pension contributions, or delayed your retirement.


Make full use of employer contributions

If you’re still working and are a member of a workplace pension, then be sure to make the most of your employer contribution.

Some employers will pay in more if you do – this is known as an employer match, and can make a real difference to how much goes into your pension. It’s well worth checking if you can take advantage of this.

Not sure what this all means for you and your pension?

Book a call with our advisory team

If you think you could benefit from getting expert financial advice from a professional, contact our advisory team today.

You won't get personal advice on the call, but they'll talk you through the advice service we offer, including charges and connect you with an adviser if you'd like to go ahead.

Our advisers can recommend how you can make the most of your tax allowances through financial planning. But if you need complex tax calculations, your adviser might recommend you speak to an accountant to complement their advice.

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Written by
Helen Morrissey
Head of Retirement Analysis

Helen raises awareness of key retirement issues to help people build their resilience as they move towards their later life.

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Article history
Published: 21st June 2024