Pensions - Articles - Call for stability ahead of Spring Statement

Frequent changes to pension rules in recent years, including measures such as the newly introduced cap on salary sacrifice from 2029 and bringing unused pension funds into the scope of inheritance tax from 2027, have introduced complexity and left many people unsure of how to maximise their savings and plan for the future.

While structural reforms that seek to widen access to overlooked groups such as the self-employed and others in less secure forms of work are welcome, constant tinkering makes long-term financial planning harder and risks discouraging engagement with retirement savings.

Lisa Picardo, Chief Business Officer UK at PensionBee, said: “Effective planning for retirement begins with a long term commitment to saving that stretches across decades. Frequent policy changes to an already complex pension environment can make it significantly harder for savers to feel confident about the decisions they are making today.

“Savers benefit from clarity and consistency. Assuming no surprises in the Spring forecast, the case for giving the system some desperately-needed stability, and allowing the general public time to digest the recent changes and their ramifications for their savings, has never been greater.

“Improving engagement with pensions hinges on trust. While frequent policy adjustments risk creating uncertainty about what the future will look like, a stable policy environment would help people plan with confidence.”