07 March 2024

Your pension updates from the Spring Budget 2024

There were a number of announcements relating to pensions in the Spring Budget 2024, including the government’s commitment to the State Pension triple lock, and a possible pension ‘pot for life’.

Here’s a summary of the announcements:

  • The government will continue their commitment to the State Pension triple lock. The triple lock ensures that the State Pension doesn’t lose value over time. You can learn more about the triple lock here.  
  • Defined Contribution (DC) pension schemes will be required to publicly announce how much they have invested in UK equities.
  • The government may take further action if this data does not show that UK equity allocations are increasing. The government is working with the Financial Conduct Authority (FCA) and the Pensions Regulator (TPR) on an updated Value for Money (VFM) pensions framework. The framework will highlight where schemes are focusing on short-term cost savings, at the expense of long-term investment outcomes.
    If a pension scheme is persistently offering poor outcomes for pension savers, the FCA and TPR will have the power to wind up the scheme.
  • The government said it will "remain committed" to exploring a lifetime provider model for DC Pension schemes. This will possibly allow savers to have one pension ‘pot for life’.
    This follows an announcement made in last year’s Autumn Statement, where the government considered whether savers should have the right to ask a new employer to pay pension contributions into an existing pension pot. This approach would be a similar to other countries, such as Australia.

You can find full details of the Spring Budget 2024 here. We’ll continue to keep you updated with any further changes which might affect pension saving on your member website.