We run through six important financial do's and don'ts as the General Election looms large on the horizon.
It’s less than a month until the country votes in the next Government and voters want to know which party will be best for their finances.
The Conservatives have just published their manifesto with a pledge to cut taxes should they retain their grip on Number 10.
But as we’re still waiting for Keir Starmer’s Labour Party to clarify their intentions to the electorate, how should people prepare?
Here we look at what to do in the run-up to this year’s general election – and what’s best avoided until after polling day on 4 July, 2024.
Don’t panic
The key is not to make any dramatic changes just because you’re worried about what might happen after the election, according to Sarah Coles, head of personal finance at Hargreaves Lansdown.
“If you weren’t planning to do something, then you shouldn’t do it just because we’re going to the polls,” she said.
Don’t delay financial planning
However, Coles believes it’s equally important not to put things off – just in case something changes after the election.
“Leaving your financial plans on hold while you wait for politicians can be a massively unrewarding process,” she said.
There is a recent example.
“Anyone who held off planning for social care costs ahead of the election in 2019 – because politicians planned to deal with it – would still be waiting five years later,” she added.
Don’t embrace short-term trading
As long as you have a diverse portfolio, and you’re holding it for at least five to 10 years you should also steer clear of short-term trading of investments.
Investing is a long-term business, so while the election may cause short-term market turbulence, it will soon recover.
Time in the markets is more important than timing the markets.
Keep saving in your pension
There remains a degree of uncertainty over the pension Lifetime Allowance that Chancellor Jeremy Hunt abolished – but it’s worth continuing to make payments for the time being.
Labour had declared it would reintroduce the policy should it gain power, but recent news reports claim the party is preparing a u-turning on that call.
Such a move would be welcomed by Jason Hollands, managing director at Evelyn Partners.
“The prospect of yet more tangled legislation to resurrect this punitive tax penalty on large pension pots and public sector pensions has caused considerable uncertainty over the last year for those deliberating whether or not to add to their savings,” he said.
Check savings rates
Interest rate cuts aren’t expected before the election takes place to avoid any risk of the Bank of England being accused of political intervention.
However, the base rate is likely to fall afterwards. Therefore, it’s worth taking advantage of great rates while they’re around – especially if you are planning to fix your savings for a period of time.
Make the most of tax allowances
You can also revisit your tax allowances, according to Coles at Hargreaves Lansdown, especially as changes to pensions tax relief and other allowances aren’t expected.
“If you were planning to contribute to either in the current tax year and have the money available now, you might want to secure this year’s allowances before the election,” she said.
“In that way, you can be confident that nothing is left in the hands of the politicians.”
This article doesn't constitute financial advice. Consider talking to a financial advisor before making any financial decisions.