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Pensions are expected to be a battleground in the upcoming election, with research from TPT Retirement Solutions revealing that three quarters (75 per cent) of savers are more likely to vote for a political party that reforms workplace pensions.
TPT's survey suggested that including reforms to workplace pensions in the upcoming political party manifestos could have a "substantial impact" at the ballot box, as nearly nine in 10 (88 per cent) working people with DC pensions want whichever party wins the general election to do more to help people save for retirement.
It also showed that, currently, 45 per cent fear people will face pension poverty if the system isn't fixed, and 55 per cent are concerned about retirement costs, while 57 per cent of Brits worried they are worried they are not saving enough for retirement.
Given these concerns, there was widespread support for plans to improve pension savings, with 96 per cent of workers supportive of reforms to increase retirement savings, such as expanding auto-enrolment or increasing minimum contributions.
In particular, TPT urged any incoming government to increase the legal minimum for auto-enrolment contributions until it reaches 12 per cent of earnings, with employers and employees contributing 6 per cent each.
It also encouraged the new government to expand auto-enrolment to everyone in full employment at age 16 or older, and that contributions should be based on all earnings rather than qualifying earnings, calling for the removal of both the lower Earnings Limit and Upper Earnings Limit.
In addition to this, 44 per cent of workers said they favour maintaining the triple lock on the state pension to ensure adequate retirement incomes.
Adequacy concerns were not the only issue highlighted in the research, however, as TPT’s study also found that many people struggle to understand their pensions and subsequently find it difficult to make retirement decisions.
According to the research, 30 per cent of workers believe pensions are too complicated and 96 per cent would support policies to make pensions simpler to understand.
Tax was another key area of contention, as the study found that 91 per cent of workers support tax reforms to make it easier for people to invest more in their pensions.
If you want a better view of what your future could be, we'll have a chat over a cup of coffee in our Durham office and work out if we can add any value to your financial picture.
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