First 100 days: 7 things that should be top of the in-tray for new government

The measures are among seven key areas that the new administration must focus on during its first 100 days following the general election, according to investment platform Hargreaves Lansdown. The firm said that initial period was “crucial in setting the direction of the government and making real and lasting changes”.

Among the top priorities should be bringing work on the advice/guidance boundary to a conclusion, which would allow millions of people to receive relevant support regarding their finances.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Right now, firms can provide guidance, but they can’t personalise it, or use it to drive people towards specific outcomes, without it being classified as advice.

“So far, in the review of the boundary between guidance and advice, the FCA [Financial Conduct Authority] and Treasury proposed a new category of targeted support, so providers could make recommendations based on what ‘people like you’ should do. This would make the information more useful, without crossing the line into advice. A new government has the opportunity to accelerate this process to a conclusion.”

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said it was crucial that a new government at Westminster helped the self-employed with their retirement plans. She described those working for themselves as a “forgotten group” when it comes to pensions.

“They aren’t included in auto-enrolment and so many miss out on pension saving,” she noted. “Added to this, the prospect of tying money up in a pension until the age of 55 can act as a deterrent, given the volatile earning patterns that might be experienced. Reforms to the lifetime ISA regime could be particularly useful to this group.”

Morrissey also highlighted the importance of addressing reforms to the state pension. Both Labour and the Conservatives pledged to retain the so-called triple lock, but she said that didn’t mean the state pension would remain untouched.

“An ageing population had led to a burgeoning state pension bill and the government needs to be wary of not placing too much of a burden on the shoulders of an already pressurised working population,” Morrissey said. “With life expectancy slowing and healthy life expectancy hovering around age 63, the government will find its hands tied in terms of future boosts to state pension age. Ideally the state pension needs to be part of any pension review, to put it on a long-term sustainable footing that gives people certainty of what they will get and when.”

Coles also said the new government must ensure that tax incentives are designed to generate “the right behaviours”.

“Tax tinkering will always be a temptation for any government, and could become even more so if they don’t get the growth they need to avoid a squeeze on government finances towards the end of the parliament. However, unless it’s designed with people’s needs at the centre, it runs the risk of putting people off doing the right thing for them and their finances in the long term,” she added.

The key priorities cited by Hargreaves Lansdown:

1. Bring work on the advice/guidance boundary to a conclusion, so people can get relevant support with their finances.
2. Ensure tax incentives are designed to generate the right behaviours.
3. Get to grips with workplace pensions.
4. Help the self-employed with their retirement plans.
5. Address the state pension.
6. Implement auto-enrolment reforms.
7. Encourage pension investment in UK businesses.