There is a generational divide when it comes to what policies people want from the new government, a survey has revealed.
Research by Aegon found the top policy priorities for people related to state pensions, retirement income needs, social care and getting on the property ladder but it also highlighted a stark difference in priorities between different age groups.
For those aged over 60, 45 per cent saw long term clarity on the state pension and the triple lock as a priority compared to 26 per cent of those in their 50s and only 21 per cent of under-50s.
Meanwhile 24 per cent of respondents prioritised raising the personal allowance for state pensioners, in line with the Conservatives ‘triple lock plus’ proposal.
Aegon said this reflected ongoing concerns that even those with no income above the new state pension could face an income tax bill in the next two or three years because of projected state pension increases taking them above the frozen personal allowance threshold.
Steven Cameron, pensions director at Aegon believed the government had a “tricky balancing act” in meeting financial priority expectations of different generations of people across the UK.
“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," he said.
In terms of age, 45 per cent of the over 60s chose this as a priority, compared to 17 per cent of those in their 50s and 12 per cent of under 50s.
The top priority for the under-50s was ‘new initiatives to help me / younger generations get on the property ladder’ (29 per cent).
However, only 14 per cent of the over 60s chose this option as a priority while 20 per cent of those in their 50s chose it as well.
Cameron added: “Generation by generation, on average we’re living longer, so balancing short-term needs with longer-term savings has never been more important."
alina.khan@ft.com
