The recent election doesn't just mean 'business as usual' for the Conservative party. Evident from their manifesto, changes are on the cards which could impact those in or approaching retirement.
To help you get to grips with the possible new policies, we have highlighted some of the 'promises' the Conservative party have made for the next 5 years.
Let's start with some good news. During the lead up to the General Election, a main pledge by the Conservatives was to increase the current Inheritance Tax allowance from £650,000 per married couple (£325,000 each) to £1m. This would be done by granting an extra allowance which would apply to the family home. Details regarding how this measure will work have still not been released.
The recent changes to the UK pension industry will continue. In regards to the State Pension, the 'triple lock' formula will also remain. This will see State Pensions increase by 2.5pc, inflation or earnings, whichever is highest. The free bus pass, TV licences for the over-75s and winter fuel payments will also continue.
However, The Lifetime Allowance, the maximum you can save into your pension, will be reduced to £1 million in April 2016. In addition to this, the party have said that they plan to reduce the current generous pension tax relief for those who earn more than £150,000.
The Conservatives have promised to introduce a law guaranteeing no rise in Income Tax rates, VAT or National Insurance before the end of their term in 2020.
Secondly, they plan to increase the tax-free personal allowance from £10,600 to £12,500 by 2020.
The Conservatives have also pledged to raise the 40% tax threshold from £42,385 to £50,000. However, a date for this change has yet to be set.
An allowance that gives you the right to transfer £1,060 of your tax-free income to your husband or wife will remain. This measure has only recently been introduced but was due to be abolished by a Labour government.