Spring Budget: Pensions expert commentary

Chancellor Jeremy Hunt’s Spring Budget is largely expected to look to bring over-50s back to work – commentary from Lily Megson

 
Lily Megson, Policy Director of My Pension Expert, said: “Jeremy Hunt was thrown a hospital pass when he took over as Chancellor following Kwasi Kwarteng’s disastrous mini-Budget. But tomorrow is his chance to give much-needed detail about how he plans to rebuild a UK economy teetering on the brink of recession and, moreover, provide vital assurances to Britons who are trying to manage their finances and plan for the future amid such turbulence.

“For certain, ‘early retirees’ will come into Hunt’s crosshairs. For months now he has heralded his intention to get over-50s back into work in an effort to tackle economic inactivity, with those who retired during the first two years of the Covid pandemic a particular focus. Reports suggest that increasing the lifetime allowance and the £40,000 annual cap on tax-free contributions to pensions are among the Budget’s policy reforms that will support Hunt’s attempts to keep people working longer.

“However, while such changes would come as a boost to some, the underlying issue is that the Chancellor risks demonising those who do not want to work until their late 60s. Instead of trying to force retirees back into employment, the government ought to empower them to plan for the future they want and deserve. Namely, the Budget should include plans to ensure more people can access the information and advice they need to make informed decisions, putting them in control of their retirement plans.

“Skills bootcamps, ‘midlife MOTs’ and sickness benefits reform are also likely to feature in Hunt’s “back to work” Budget. Whether he gives the same amount of attention to those feeling pressured to delay or come out of retirement after decades of hard work and diligent saving due to soaring cost of living – only time will tell.”