PensionBee, a leader in the consumer retirement market, has expressed disappointment in the Spring Statement given its failure to address the nation’s pensions crisis.
Prior to the Statement, PensionBee had urged policymakers to implement a series of much-needed reforms to improve engagement and transparency in the pensions industry to drive better retirement outcomes.
PensionBee has called for the introduction of a 10-day pension transfer switch guarantee to reduce long delays, making management of pension savings easier and fairer for everyone and building confidence in the pension system.
PensionBee has also consistently championed policies aimed at closing the pension saving gaps across the population, such as expanding auto-enrolment coverage to the younger and less well paid, increasing auto-enrolment minimum pension contribution levels, and considering a universal rate of tax relief to level the playing field for lower earners to build up their retirement savings, highlighting much-need improvements required to create a better pensions system. However, none of these key issues featured in today’s Spring Statement.
All comments from Lisa Picardo, Chief Business Officer UK at PensionBee:
“It’s disheartening to see that pensions have been sidelined in the Spring Statement. While there are a lot of important issues being addressed, there is growing evidence that millions of Britons are simply not saving enough for retirement, and the government has chosen to overlook potential ‘quick-win’ reforms that would signal the importance of, and actively help individuals build, long-term financial security.
“Our proposals – including implementing a 10-day pension transfer switch guarantee, accelerating progress on auto-enrolment expansion and adopting a universal rate of tax relief – are all critical steps towards a fairer pension system that encourages better engagement and investing to achieve better retirement outcomes. As the first Statement from a new government, it potentially sets a worrying tone for the years ahead – suggesting that these types of pension reform are not a priority.
“We cannot afford to keep kicking the can down the road when it comes to pension reform. Every year of inaction risks leaving more people financially vulnerable in later life. While we welcome discussions around the future of pension policy, we need decisive action, not just words. If we are serious about ensuring financial resilience for future generations, then the government must prioritise these long-overdue reforms.”
Views on what has been announced
Getting people back to work
“Supporting more people into employment is a crucial step towards improving financial security in later life. While the government’s investment is a positive step, it’s equally important to ensure that those re-entering the workforce are saving for their futures.
“Many workers, particularly those in lower-paid or part-time roles, still face barriers to pension saving due to eligibility thresholds and a lack of flexible options. To truly create long-term financial resilience, reforms such as lowering the auto-enrolment earnings threshold and expanding access to workplace pensions must remain a priority.”
National Insurance.
“The planned hike in National Insurance for employers, coming into effect on 6 April 2025, is set to add more strain on businesses, particularly those already struggling with rising wage pressures and cost inflation.
“This change is not just a challenge for businesses; it’s a direct challenge to workers’ financial wellbeing. The higher cost of doing business may increase unemployment rates, will inevitably impact wage growth, and may also lead to reduced employer pension contributions.
“It’s essential that employers and individuals continue to recognise the critical importance of pension saving and avoid the temptation to reduce or postpone pension contributions, especially when the long-term benefits far outweigh any easing of short-term pressures. As the tax burden increases, pension contributions should be seen as one of the most effective ways to safeguard financial futures.”
