"Election outcomes often bring changes to benefits and social support systems"

With the 2024 General Election fast approaching, we reached out to a handful of financial advisers to get their take on what it means for your money. Carla Brown, Founder and Managing Director at Oakmere Wealth Management Ltd, weighs in with her thoughts on tax and allowances, benefits and social services, and the outlook for the economy.

As we approach the General Election, many of us are wondering how the outcome will affect our wallets. While the political landscape can seem a bit daunting, it's important to understand the potential impacts on your finances. Here are three key ways the election could influence your money:

1. Taxes and allowances

Political parties often propose changes to Income Tax rates, National Insurance contributions, and personal allowances. These changes can directly impact your take-home pay. For example, if a party promises to lower Income Tax for certain brackets, you might see more money in your paycheck each month. Conversely, if they propose increases, you could end up with less disposable income. It's crucial to pay attention to these promises and consider how they might affect your budget.

2. Benefits and social support

Election outcomes often bring changes to benefits and social support systems, which can significantly impact your finances. For instance, proposals to increase the State Pension could mean more income during retirement. Alternatively, changes to benefits such as child support or disability allowances can alter your financial situation. If a party pledges to cut benefits, it might mean you'll need to adjust your budget to accommodate reduced support. On the flip side, enhanced benefits could provide extra financial relief.

3. Economic stability and investment

Elections can also affect the broader economic environment. Political uncertainty can influence the stock market and interest rates, which in turn affect investments and savings. If a party’s policies are perceived as business-friendly, this might boost market confidence and positively impact your investments. On the other hand, uncertainty or perceived risks could lead to market volatility, impacting pension funds and savings accounts.

Understanding these potential changes can help you make informed decisions about your finances. Stay informed, consider speaking with a financial planner, and remember that being proactive can help you navigate any changes that come your way.