A new survey by Aegon UK has revealed a stark generational gap in financial policy priorities, with older generations focusing on state pension and personal allowance increases, while younger individuals prioritise housing market access.
The research, conducted by Opinium following the recent general election, delves into key policy priorities including state pensions, retirement income, social care, and property ownership.
Older Generations Seek Security and Income
The survey found that a significant 30% of respondents across all age groups expressed a desire for long-term clarity regarding the state pension and the triple lock system. This concern resonated particularly strongly with those aged over 60, with 45% citing it as a major priority. This sentiment was echoed by 26% of those in their fifties and 21% of those under 50.
Furthermore, 24% of respondents prioritised increasing the personal allowance for state pensioners, aligning with the Conservative Party's "triple lock plus" policy. This was a key concern for a substantial 45% of individuals over 60, compared to 17% of those in their fifties and a mere 12% of those under 50.
Younger Generations Fight for Housing Affordability
In contrast to their elder counterparts, individuals under 50 placed a strong emphasis on policies aimed at tackling the housing affordability crisis. A substantial 29% of those under 50 prioritised "new initiatives to help me / younger generations get on the property ladder". This goal received less support from older generations, with only 14% of those over 60 and 20% of those in their fifties agreeing on its importance.
Pension Dashboards and Social Care Concerns
Interestingly, pension dashboards, a tool designed to securely consolidate all pensions in one place, emerged as a policy priority for both younger generations (under 50) and those in their fifties. This highlights the growing importance of financial planning and transparency for all age groups.
Social care, a critical issue for many individuals, was highlighted by over 20% of respondents across all age cohorts. However, the Labour government has yet to provide concrete proposals on this front.
Balancing Short-Term Needs with Long-Term Planning
Aegon pensions director, Steven Cameron, commented on the survey findings: "This fresh research demonstrates the challenging task facing the new Labour government in meeting the diverse financial priorities of different generations across the UK. It is evident that those over 60 hold very different priorities compared to the under-50s wishlist."
"The 60+ cohort prioritised long-term clarity around the state pension and a rise in the personal allowance for state pensioners to prevent those solely reliant on the state pension from facing a tax burden," he added. "While the incoming government has announced a Pension Schemes Bill and a pensions review, neither specifically addresses the state pension."
Cameron also acknowledged the under-50s' key concern regarding housing affordability. "This is an area that Labour has identified as a crucial focus in their early days in government," he said.
Cameron emphasised the importance of intergenerational fairness when crafting financial policy: "The new government has declared its ambition to deliver meaningful change. When it comes to long-term financial planning for individuals, it is crucial to consider the 'generation gap' and evaluate policy choices through the lens of intergenerational equity. As we are living longer, balancing short-term needs with long-term savings is more critical than ever before."
