More people trust the Conservatives to deliver a fair pension system than Labour, while a general distrust of politicians is prompting people to cash out “while they can”, a survey of workers approaching retirement reveals.
Some 29 per cent of 1,000 people survey on behalf MGM Advantage trust the Tories on pensions, rising to 48 per cent for people with incomes between £60,000 and £100,000. This compares to just 16 per cent who trust Labour.
In addition, 39 per cent say they do not trust any party.
The research also finds one in 10 people plan to take more than the 25 per cent tax free allowance from their pensions post-April, with 27 per cent saying they want to take cash out because of fears future Government would renege on the freedoms.
MGM pensions technical director Andrew Tully says: “The lack of trust in politicians and constant meddling in pensions is driving some people to consider cashing in their pensions because they don’t think the changes will last. What we need now is amnesty on policy adjustment. Whoever is in power after 7 May needs to give both the public and the industry time to adjust and put in the hard work that will be required to make the changes a success.
“But the Government will also need to monitor consumer and industry behaviour to ensure that appropriate checks and balances are in place to ensure retirees are getting the best outcomes. It must be about people, not politics.”