This year’s Spring Statement was always expected to be a modest update. Rachel Reeves had previously stated there would only be one fiscal event per year. True to that approach, the Chancellor kept big policy decisions off the table, reserving major announcements for later in the year.
The statement, of course, reflected a difficult economic climate – now more than ever the Government must do more to protect the most vulnerable in society and offer much-needed reassurance to savers. However, the absence of any effective reference to pensions within the speech will have come as a disappointment for retirement savers. At a time when many are still rebuilding financial confidence – and trying to understand whether they’re on track for the retirement they want – some additional reassurance would have been welcome. But instead, pensions were largely left out of the conversation.
A system in need of clarity
The Government did not ignore pensions entirely – there was a brief nod to the Pensions Investment Review, a policy aimed at unlocking greater value for savers and improving how workplace pensions are invested in order to boost the economy.
Yet the Chancellor gave no update on the second phase of their pensions review, which will focus on the crucial issue of savings adequacy and whether the pension system is on track to deliver the outcomes people want and expect.
Providing a clear timeline for this would have been a positive step, given how important this issue is. With rising costs and a well-documented pensions engagement crisis, many people are finding it increasingly difficult to judge whether they’re saving enough for the future.
For example, recent research from My Pension Expert found that 53% of UK adults with a workplace pension feel out of their depth when it comes to pension planning, while 35% of over-40s expect to work into their 70s. A timeline for the next stage of reform would have helped reassure savers that their concerns are being taken seriously.
The government received some positive news on the morning of the statement, with inflation easing slightly. However, inflation has been unpredictable, and pressures on household finances remain – and for many, confidence in long-term financial planning is still fragile.
This isn’t about sweeping reform. It’s about providing reassurance. Clearer guidance, access to advice, and a system that supports people at every stage of their working life.
The case for action
The need to be cautious is understandable, a measured approach to economic recovery. But caution can’t come at the expense of action, especially when it comes to retirement saving.
At My Pension Expert, we hope to see the Government reaffirm its commitment to driving better outcomes for savers and engaging with the industry to drive this forward. In doing so, sustainable change will be achieved, with more savers feeling supported to achieve the financial future they want.
Pensions aren’t just about policy – they’re about long-term security. And people deserve to feel confident about their future.
