The government should commit to the long-term stability of pension policy and avoid further adjustments that could add to saver uncertainty in its Spring Statement, PensionBee has stated.

The provider warned that frequent changes to pension rules, such as the cap on salary sacrifice from 2029 and pensions being brought into the scope of inheritance tax (IHT) from April 2027, had introduced complexity and left many unsure of how to plan for the long term.

PensionBee said that structural reforms that looked to broaden access to overlooked groups, such as the self-employed and others in ‘less secure’ types of work, were welcome.

However, it raised concerns that constant tinkering could make long-term financial planning harder and risked discouraging engagement with retirement savings.

“Effective planning for retirement begins with a long-term commitment to saving that stretches across decades,” said PensionBee chief business officer UK, Lisa Picardo.

“Frequent policy changes to an already complex pension environment can make it significantly harder for savers to feel confident about the decisions they are making today.”

Picardo argued that savers benefitted from clarity and consistency, and that the case for giving the pension system some stability to allow the public time to digest the recent changes and their ramifications for their savings had never been greater.

“Improving engagement with pensions hinges on trust,” Picardo continued. “While frequent policy adjustments risk creating uncertainty about what the future will look like, a stable policy environment would help people plan with confidence.”

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