Spring Statement reveals a savage downgrade to government's auto-enrolment ambitions (perhaps) (maybe)

The Treasury had played down all expectations in advance of today’s Spring Statement, and the Chancellor followed his brief. He delivered very little. You should feel no urgent need to print the many pages of official documents that accompanied today's statement. Save the trees.

In summary, some economic forecasts are down (a little) and some are up (a little). But all forecasts carry a big Brexit-sized dollop of uncertainty. The OBR’s forecasts assume that the UK manages a smooth Brexit transition. How’s that looking to you?

There were no new announcements on personal finances.

Two mentions for pensions

Pensions did however secure a couple of notable mentions in the Office for Budget Responsibility's (OBR's) report.

The pension freedoms continue to rake in more tax revenue than had been predicted. (No numbers were shared). Savers continue to love the freedoms. So, we can expect the (tax-hungry) Treasury to continue their support for the freedoms, even if the FCA are more inclined to voice concerns.

And auto-enrolment secured a curious little mention. The OBR confirmed that they had given no weight in its forecasts to the government’s plans to revise the auto-enrolment rules in the mid-2020s, including the reduction of the eligible age from 22 to 18. The OBR positioned the government’s plans as “proposals”. The curiosity arises as in its previous report they were referred to as “ambitions”*. Why the change in wording? Is a change from “ambition” to “proposal” an upgrade or downgrade?

Auto-enrolment has been great, bringing 10 million more people in to workplace pensions. But it needs to evolve if millions are to avoid disappointment in retirement. If “proposals” are downgraded to “options” in next year’s report then I'll be really worried.

And just because I may be paranoid it doesn't mean they aren't out to get us.

* Congrats to David Robbins of Willis Towers Watson for this eagle-eyed spot.