There is a generational gap between the under and over-60s in terms of what they expect from the new Labour government in helping them plan for their financial future, says Aegon.
The top priorities focus on the state pension, retirement income needs, social care and getting on the priority ladder, but there are stark differences between how different generations view them.
Three in 10 people (30%) called for long-term clarity around the state pension and the triple lock to be a priority. However, older generations saw this as much more important, with 45% of over-60s citing it as a priority, versus 26% of 50-somethings and 21% of under-50s.
Meanwhile, 24% of those surveyed prioritised raising the personal allowance for state pensioners, in line with the Conservatives ‘triple lock plus’ proposal, however a similar trend appeared with 45% of over-60s opting for this, compared to just 12% of under-50s.
The top priority for under-50s (29%) was ‘new initiatives to help younger generations get on the property ladder.’ Less than one in six (14%) of those over the age of 60 went for this option and 20% of those aged 50-59 felt this was a priority.
Steven Cameron, pensions director at Aegon, said: “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+ 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 focuses on the state pension.”
Cameron said that for those under 50 as well as those aged between 50-59, the introduction of pension dashboards was a policy priority.
Cameron added: “The industry has been working with government and regulators on this, and we hope the new government will endorse the current timeline, which would see dashboards become available to the public in 2026.
“Another priority concerns social care and what individuals may need to pay for this. The new government has clearly stated their ambition to bring about real change. When it comes to individuals’ longer-term financial planning, it will be important to ‘mind the generation gap’ and examine policy choices through the lens of intergenerational fairness.
“Generation by generation, on average we’re living longer, so balancing short-term needs with longer-term savings has never been more important.”
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