The Spring Statement is the Chancellor’s first opportunity to present his financial plans for the coming year. Traditionally, he would unveil ambitious new government programs designed to curry favor with the electorate. Economic hardship forced Mr Sunak to back down and retirees received little news of his announcement.
What did Rishi Sunak announce about retreats?
Mr Sunak couldn’t get much into his shorter statement today, but left out several topics he needed to cover.
After a series of measures intended to counter the cost of living and fuel crisis, he did not address pensions.
He made no mention of changes coming for those taking a pension, although he said the Tories were planted behind them.
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Pensions were weaker last year after the government abandoned a central promise.
In September 2021, he rescinded a 2019 campaign promise to preserve the triple pension lockout from the end of last year.
Under this policy, pensions increase in line with inflation or average wage growth, or 2.5% if these two values are lower.
Despite previously pledging to bring him back until the end of Parliament, Mr Sunak has made no announcement about his eventual return.
This does not mean, however, that retirees do not receive any help.
Some of the tax cuts introduced by Mr. Sunak will have an impact on their households.
Experts focused on the decision to reduce basic income tax rates.
They think the 19% cut by 2024 will be “welcome” to retirees.
DO NOT MISS
But Andrew Megson, executive chairman of My Pension Expert, said it would only provide a “band-aid” for the sector, while urging savers to seek independent advice.
He said: “Systematic changes will be needed to provide meaningful support for people in retirement or early retirement.
“For example, research by My Pension Expert found that 64% of Britons aged 40 and over believe simplifying the pension system would benefit pension planners.
“Almost half (47%) would like to see the government improve access to independent financial advice.”
“Obviously, the UK’s pension problems go far beyond simple monetary support.
“Such changes will inevitably take time. As such, I urge savers to seek independent financial advice pending progress.
“In doing so, savers will receive a clear explanation of the inner workings of the complex pension system.
“In addition, they will be able to build a retirement strategy adapted to their needs and financial objectives. And it will likely instill some welcome financial confidence in them, despite such economic uncertainty.