0:00
You trust the government with your money
0:02
Well, a new poll has revealed that 70% of over 55s feel that their financial security is under threat
0:10
Well, 40% of those polled also revealed they plan to withdraw money from their pension pots
0:16
Well, they're not surprising, is it, to be honest, the way things are at the moment. Let's talk to the CEO of Tally Money, Cameron Parry
0:21
Good to see you this morning. I mean, there's a lot of changes going on at the moment
0:28
Is that just undermining people's faith? Yeah, that's right. We conducted research this month on over 2,000, over 55s
0:38
And, yeah, we found a whopping 93% felt that this Labor government
0:43
wasn't going to protect their pensions. And there's an upcoming spring budget
0:50
People are concerned about this. And, you know, we've sort of seen the economy go in a different direction
0:54
to what the last budget was based, you know, relied on. so yeah people are concerned
0:59
they worried they worked all their lives built up some wealth and now there a bit of a money grab coming from the government So what do they fear the government will do with their pension Because they can take it off them if it a private pension
1:12
But is it all about how it's taxed and also how it can be passed on to family
1:17
Yeah, that's right. It's a combination of inheritance tax rules, changes, limits and when they can apply tax there
1:23
there comes into effect when you die, has an effect the age that you die, whether your estate
1:32
needs to pay inheritance tax, sorry, whether your estate is taxed with death tax on what you leave
1:39
and then whether your beneficiaries actually pay income tax at their income tax rate on what you
1:44
bequeath them. So, and that has a, there's a line in the sand whether you die before 75 or after 75
1:51
So, yeah, how you deal with your money, the tax benefit, you know, how you've been incentivised to hopefully build up
1:58
a pot of wealth for you and your family so that you're not a burden on society
2:02
you're not a burden on the taxpayer, you at the end of your income life and so you can adapt If they change the rules it really is people are concerned that they won have enough And your poll also found that 40 of people
2:19
revealed to withdraw money from their pension pots. What do you think that's about
2:24
Is that people quite literally not having enough to make ends meet? Is they having to dip into their pension pot early
2:29
Or is this the issue of trust again, not trusting that pension pot
2:32
Yeah, it's more to do with people who have a bit more
2:37
and have the means, they will go and sort this out and try and try, even if the rules change
2:44
try and adapt to that as best they can. They're motivated to obviously protect their money
2:50
It is, you know, as always in these type of things, it is the poorest who don't have resource
2:55
that end up getting hurt the most. Yeah, we found 60% realise that they, subject to rule changes
3:03
they will make a move or they realise they will have to. But we found 93 of the participants in the survey they felt that they were not this Labor government would not protect their pensions and a whopping eight out of ten actually felt that they deliberately being punished You see this is the problem because for a long time
3:25
a lot of people have been encouraged to invest in their pension, not just for old age
3:31
but because it's a good tax-efficient investment route. And now that's all changing
3:37
So after years and years and years of people saying, put in your pension, put in your pension, it's now targeted
3:42
Yeah, that's right. And, again, people are trying to be self-responsible. They're not just sitting back and relying on the government
3:48
to, you know, make good decisions in their interests all the time
3:52
And, indeed, you could probably argue, particularly of late, that even more so the opposite is happening
3:58
But that's right. I mean, that's the unfairness of the whole thing. You try and build something up so you're not a burden on your family
4:05
society, and then they change the rules when you can no longer adapt to that
4:09
and it's all sorts of problematic and undermining of confidence, undermining of spending
4:16
It doesn't flow into what the growth sort of priority that this government speaks about
4:22
It's just wrong. OK. Cameron, good to see you then
