As the UK approaches the general election, set for 4 July, you may be starting to consider what a change of government could mean for you.
With manifestos released and campaigns in full swing, there are a number of key topics in the spotlight – from NHS waiting lists to record high taxes and struggling public services.
Here we’ll run through some of the main headline issues from the recently launched manifestos, and how they might affect you, your profession and possibly your retirement.
Whatever happens, an ever-changing financial landscape means it’s more valuable than ever to seek professional advice to continue making the most of your money.
The Lifetime Allowance (LTA)
The Lifetime Allowance was the total amount you could build up in all your pension plans over your lifetime without incurring an extra tax charge.
The limit (£1,073,000) applied to the value of all pensions you belong to, meaning you could face an extra charge on top of the usual income tax.
The current government abolished the Lifetime Allowance (LTA) with effect from April 2024.
While it had been reported that the Labour Party would re-introduce the Lifetime Allowance if they came into government, it has since been confirmed that these plans have been dropped.
This means that whichever political party wins the election, those at the higher end of the pay scale (including many doctors and dentists) should continue to benefit from the removal of this allowance.
In other tax headlines, the Conservative Party has pledged a number of cuts – including plans to reduce National Insurance to 6% by April 2027 – while the Labour Party has stated there will be no rises to income tax, National Insurance or VAT.
The NHS
In their manifesto, the Conservative Party pledges to launch the first ever Long-Term Workforce Plan for the NHS, with the goal of recruiting 28,000 more doctors and 92,000 more nurses in comparison to 2023.
The party also outlines a Dental Recovery Plan, which aims to unlock 2.5 million more NHS dental appointments, as well as promising to boost training places for dental professionals by 40%.
Dentists may also be interested to hear that the Conservative Party is planning to make further reforms to the dental contract to ensure its future sustainability. This will ensure that newly qualified dentists have to work in the NHS for a number of years to pay back their training costs.
Improving the provision of healthcare is also a core campaign issue for the Labour Party. The party plans to deliver an extra two million NHS operations, scans and appointments every year by incentivising staff to carry out additional out-of-hours appointments.
The Labour manifesto also recognises how difficult it can be to access GP appointments, pledging to train thousands more GPs and guarantee face-to-face appointments for those who want one.
A dentistry rescue plan is outlined too, with the aim of providing 700,000 more urgent dental care appointments and recruiting new dentists into high-need areas. When it comes to reforming the dental contract, Labour also plan to shift the focus onto the retention of NHS dentists.
Pensions and retirement
In their manifesto, the Conservative Party introduce the new Triple Lock Plus, which aims to ensure that the personal tax allowance for pensioners also rises in line with the highest of inflation, earnings or 2.5%.
This is alongside continuing the current Triple Lock, which uprates the state pension in line with the highest of prices, earnings or 2.5%.
Under the new Pensions Tax Guarantee, the Conservatives pledge not to introduce any new taxes on pensions. The 25% tax-free lump sum will be maintained, as well as tax relief on pension contributions at their marginal rate.
The Labour Party has also pledged to protect the triple lock on pensions as a way to provide security for those in retirement.
As part of their review of the retirement landscape, Labour plans to provide the Pension Regulator with new powers to intervene where schemes fail to offer sufficient value for their members.
Supporting your retirement planning
With a potential change of government on the horizon, it’s normal to feel concerned about how the results of the general election might impact your financial situation.
While it remains to be seen how these issues might play out, rest assured that we’re on hand to support you through any changes that might affect your retirement planning in the future.
Offering expert guidance tailored to the needs of medical and dental professionals, your Specialist Financial Adviser from Wesleyan Financial Services can help you review your financial situation and make sure you’re on track to meet your retirement goals.