What does Rishi Sunak’s announcement of a 4th July election mean for your finances?

☑️ Pensions: Both Labour and the Conservatives support the triple lock on state pensions, but there’s a risk of the state pension age rising to fund it. The Conservatives axed the Lifetime Allowance on pensions, but Labour may reinstate it, although details are unclear. Automatic enrolment into workplace pensions might lower the qualifying age to 18 and adjust earnings bands, pending legislative approval.

☑️ Savings: May be are impacted by a delayed Bank of England rate cut, benefiting savers with high variable rates possibly extending into September. Mortgage holders on variable rates or trackers face prolonged high rates, with fixed-rate deals unlikely to drop soon.

☑️ Tax: Policies remain uncertain, but voters favour cuts, especially for council and income tax, balanced against funding public services. Housing policies will be crucial, with potential building pledges, planning changes, and first-time buyer incentives. There’s also interest in revising the Lifetime ISA property value limits.

☑️ Market volatility: Investment markets may experience volatility pre-election, with stability hinging on the election outcome. Watch for ISA policy changes, with Labour advocating simplification and the Conservatives consulting on the UK ISA.