Pensions LTA
For advisers and some of their well-pensioned clients, perhaps the biggest question of all is what would Labour, if in government, actually do to the lifetime allowance.
After the truly horrendous complication of removing it, no one should be in any doubt as to how horrendously complex reintroducing it could prove.
Is this really what a Labour government would or should prioritise?
Beyond the headlines: the bumper pensions pack
Whoever is in power by the year end will also need to decide if or how to progress the long list of game-changing policy initiatives on pensions, and in what priority order.
For each, would a Labour government continue as is, put their own spin on it, go faster, or call a halt?
The following is part prediction and part wishful thinking.
I’d expect a Labour government to push ahead with pension dashboards as a key building block to pension engagement, now that more detail is being published.
Their policy paper "Financing Growth: Labour's plan for financial services" strongly suggests they’d continue the encouragement for more defined contribution pension investment in productive finance and in the UK specifically, although their methods could be different.
That same paper shows Labour supports the scheme consolidation agenda, so I anticipate the proposed value for money framework proceeding, shaped by post-consultation development of detail.
In terms of supporting wider investors as well as pension scheme members, I’m particularly pleased that Labour supports the advice guidance boundary review proposals.
I’m less sure on Labour’s position on the detail and timeline for introducing small pot consolidators, the extension of pension freedoms to trust-based schemes, and the creation of decumulation-only collective defined contribution schemes.
The current government has already stated it will take more time to consider pot for life, and I do hope an incoming Labour government might leave this firmly on the shelf for now.
Social care funding
Finally, on a topic very much linked to retirement, Aegon continues to push for manifestos to include a clear policy towards the funding of social care.
The Conservatives’ deal was delayed two years until October 2025 with little mention of it in recent times.
I hope that a Labour government would support the principle of a cap on care costs, but I’m pretty sure it would want to revisit the details.
As we on average live longer, paying for social care impacts on millions of families, making it important voters understand how our future government would tackle this.
