Following a notable absence of pensions in the Spring Budget, John Wilson, Head of Technical, JLT Employee Benefits, says:
“By avoiding the issues of retirement savings, the Chancellor has missed the opportunity either to address the pressing issues around the sustainability of defined benefit pensions, or to encourage long term savings. In particular, proceeding with the reduction in the money purchase annual allowance sends out the wrong message.
“Philip Hammond has recognised the importance of healthy living and healthcare and wanted to lend greater support to the younger generation, yet he has not responded to the challenges of financing longer retirements. As we help people to live longer, we need to ensure they have enough money to look after themselves. Has the Chancellor not realised that living an extra 10 years with 30% less spending power is not really progress?
“It is possible more fundamental reform will be announced in the Autumn Statement depending on progress with automatic enrolment, State pension age reviews and the DB pension scheme consultation.”