The hung parliament outcome of the 2017 Election brings unwelcome uncertainty in many areas of financial planning – not least pensions planning.

With such a thin majority in the House of Commons – assuming all Conservative & DUP vote alike – the Government will need to tread a careful path in pushing through its policy in many contentious areas, including pensions.

Many commentators report a period of limbo will ensue while a new Government is formed with the possibility of a further Election later this year or into 2018. Before then, the Chancellor, Phillip Hammond – who during the campaign was widely tipped to be replaced – has been re-appointed and may well need to take a different Budget direction, which could mean many months before policies on retirement and pensions become clear.

The Conservative policies to remove the state pension triple lock – the method where state pension payments are guaranteed to rise by the highest of 2.5 per cent, earnings or inflation – and accelerate two increases in state pension age from 2026 and 2044 were vehemently opposed by Labour and the other parties during the campaign, and we will need to see how the DUP regard these issues before we know if the Conservatives stick with these proposals.

Policies on social care funding, pension tax relief and winter fuel allowance means testing may also take a back seat while the wheels of Westminster slowly turn.

Theresa May’s decision to call a snap election also derailed a number of personal finance policies which were due to be implemented but were omitted from the Finance Bill. This includes the proposal to reduce the Dividend Allowance from £5,000 to £2,000 and a cut to the Money Purchase Annual Allowance from £10,000 to £4,000. The MPAA reduction is particularly problematic because the Government said it would apply from 6 April 2017 but never actually put this into law.

Clarity is needed whether these rules will be dropped or applied retrospectively – this would be particularly harsh given that many savers will have had no idea the reduced allowances apply. Deferring the start date for these changes until April 2018 appears to be the fairest route but with all the current uncertainty it would be unwise to plan for that eventuality.

And then of course there’s Brexit…

There is a simple way to get a firm grip on all your choices: the Premium version of the RetireEasy LifePlan has a simple to use “scenario function”.

First, key in all your “known” parameters – your future income, assets and outgoings together with your desired income during each year of your retirement and save this as your “master template”.

You can then try out and save as many different scenarios as you wish – projecting, for instance, when and how much you might inherit in the future and seeing how this will impact your finances, and how much you could afford to pass down to younger members of the family.

Equally, if you are looking to pass on wealth in the future, you can see what effect gifting members of your family during your lifetime will have on your finances. This can also play a key role in managing future inheritance tax liabilities while ensuring you can live comfortably.

Knowledge is power – so make sure you know exactly what YOUR future might hold!