Chancellor, Rachel Reeves, has delivered her Spring Statement, with no significant changes announced in relation to pension policy or pension tax reliefs.

Standard Life retirement savings director, Mike Ambery, pointed out that "the Chancellor has remained true to her principle of sticking to one fiscal event per year and for many, it’s ‘as you were’ following the Spring Statement".

In particular, Ambery noted that pensioner benefits have been "spared much to the relief of those on fixed incomes", despite the rising cost of the state pension.

"At an annual cost of nearly £140bn the state pension would have been an attractive but politically fraught area for cost saving, particularly given the government’s manifesto commitment to the triple lock," he stated.

"The sums of money involved are sure to make the state pension a focus of debate but for now at least it is business as usual.”

Some in the industry had also been hoping for further detail on a number key policies and upcoming reforms, many of which are expected to be shared this spring.

This includes the government's response to its consultation on options for defined benefit (DB) pensions, which will provide further detail on plans tochange DB surplus rules, the final Pension Investment Review, which is expected to outline next steps for phase two of the review, and updates on work to resolve state pension underpayments.

PensionBee UK chief business officer, Lisa Picardo, admitted that it was "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 and actively help individuals build long-term financial security," she stated.

Picardo continued: “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.”

However, Ambery said that whilst there was no mention of phase two of the review in the Spring Statement, there is still hope that the industry could hear more on the timings for review in the coming months/weeks.

"Increasing pension contributions right now at a time when economic growth is in short supply is a difficult message to manage but ultimately action needs to be taken as only one in seven people are on track for retirement," he stated.

"The adequacy review provides an opportunity to look at how this challenge is addressed over the long-term with the potential for a roadmap of changes giving individuals and business certainty about what to expect.

"Doing so will not only lead to better savings outcomes for individuals but also has the potential to create additional investment in the UK.”

In addition to this, Ambery suggested that, given the "clear" squeeze on the public purse, it seems the stage is set for a more significant Autumn Budget.

"With formidable spending obligations and a firm stated commitment to obey its fiscal rules, unless we see a strong summer of economic growth the government is likely to face a choice between further spending cuts and tax rises," he continued.

More broadly, Ambery also stressed that "despite pensions barely featuring in today’s statement, both parliament and the industry will be kept busy in the weeks ahead as this legislation progresses!”

“The other major event this year is the Pension Schemes Bill where we are expecting a first draft within weeks," he stated. "Previewed at the King’s Speech, the bill will contain a number of significant developments designed to address pressing issues facing savers and the industry."

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