Marvin OnumonuPete Glancy, head of pension policy at Scottish Widows, shared his views on the upcoming Spring Statement tomorrow, 26th March 2025.
Glancy said: “The Spring Statement should focus on indicators of how the economy has been doing, such as GDP growth, inflation, tax, Government spending and borrowing.
“While I’m hoping for some exciting news in areas such as Productive Finance, Value for Money and Defaults in Decumulation in the next couple of months, I think in keeping with tradition, we are less likely to see the statement used as a platform for new policy announcement beyond tweaks to the public finances.
Glancy added: “It could still mean that anything we do hear on the day could have an impact on things like saving, investing and pensions.
“The relative performance and attractiveness of our economy could influence asset allocations either towards or away from the UK.”
He said signals of a recession might shift preferences towards bonds over equities, and if the economy appears strong, the opposite could happen.
He said: “Short-term interest rates trending down could shift people from cash ISAs towards equity ISAs, and longer-term interest rates remaining high may favour annuities over income drawdown.”
Glancy also emphasised the importance of interpreting the announcements to anticipate changes in customer behaviour.
He added: “The trick is to translate what is announced on the day into how it might play out into customer behaviours and customer demand.
“Then we can look at ways to fine our propositions to best meet evolving customer needs.”
