The Budget on 30 October is Chancellor Rachel Reeves’ first, and there has been plenty of speculation about the measures it might include.
A poll by Skipton Building Society research found that just one in four people (26%) are feeling hopeful and optimistic about the upcoming Budget announcement. Seven in 10 (70%) admitted to feeling worried or anxious about what the Government may announce. Women are worrying more than men (77% vs 62%).
Speculation around what impact the Budget may have on personal finances and the future retirement age is causing concern for many. Almost half (49%) predict that the Budget will have a negative impact on their personal finances, compared to less than one in five (17%) who are feeling more optimistic for a positive impact on theirs.
When it comes to the nation’s biggest financial fears, more than a third (36%) are worried about a rise in the State Pension age. With more than two in five women (43%) concerned about this compared to men (29%).
Almost a third (30%) of all respondents said their biggest financial concern would be if the State Pension became means-tested, while more than a quarter (28%) fear a removal of the triple lock on the state pension the most.
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‘Gender pension gap remains a significant issue’
Helen McGinty, head of financial advice distribution at Skipton Building Society, said: “With costs rising and savings getting stretched, those with one eye on their retirement are concerned as Budget speculation around pensions and retirement continues to grow.
“The gender pension gap in the UK remains a significant issue, so it’s no surprise this research is highlighted the biggest financial worries for many are related to retirement planning and pensions. Particularly for the women out there who could be looking towards a pension shortfall which sees them working for much longer than hoped.
“When Skipton investigated the Gender Pension Gap, we found the average man has a pot of £63,222 ready for their retirement. Staggeringly, that’s 46% more than women, who on average have £43,117 to see them through their life after work.
“A pension gap might come as no surprise, as women take more time out of work, it is a logical consequence that their pensions build more slowly. But when it comes to taking time away from work, our research found 69%ᶾ of women don’t consider how this could impact their financial future.”
However, despite Skipton’s latest research highlighting the concerns of many women ahead of the Budget, when it comes to taking action in preparation for any anticipated changes, it’s men who are taking the lead.
Whilst more than half (53%) of women say they’ve not take any action to prepare in advance of the Budget, only one in three men (32%) say the same. Of those men looking at their personal finances ahead of the Budget, 15% have increased the amount they are saving, 13% say they’ve increased their pension contributions, 12% have already sought professional finance advice, and 17% say they’ve opened high rate savings accounts in anticipation of Budget changes that may impact them.
McGinty added: “While speculation ahead of the Budget, is just that – speculation – it is bringing to the fore steps we can all take to monitor and manage our finances. The gender pension gap may be a result of systematic gender imbalance or down to the fact that many working mums are sacrificing their earnings to put their children first.
“But as with many things in life, knowledge is power, and it really pays to know what your pension looks like and to seek professional financial advice to get the help and support you may need to plan for your future.
“It’s really important at any age to take the initiative, be in control, and plan ahead. Be aware of the decisions you are making and how they may impact your financial future – if you need to, increase contributions to combat those gaps in earnings.”