Confidence in pensions dips as ‘painful’ Budget looms

Oct. 15, 2024 - Express

Confidence in retirement prospects among Britons has fallen slightly amid speculation about changes to pensions in the Budget. Rumours about the way pensions will be taxed, for example, changing tax relief on contributions and slashing the lump sum people can take from their nest eggs free of tax, appears to have hit confidence.

The uncertainty has been picked up by the latest Pension Confidence Index from investment experts PensionBee, who said people’s view of their retirement prospects have dipped from a figure of +30 to +28. Looking at older workers, those over 55, optimism about pensions peaked at 65 percent in March this year but has now fallen back to 62 percent “reflecting a more cautious sentiment among this group since Labour has taken office”.

PensionBee said: “This is compounded by increasing distrust in the government’s commitment to maintaining a sufficient State Pension, up from 18 percent in March 2024 to 27 percent in September 2024.”..