Perhaps because the main event last year was later than usual, it seemed hardly credible that the Spring Statement was this week.
The recent Iranian situation – it is fair to say – had also stolen the attention of the UK media in recent days.
In the event, Rachel Reeves was as good as her word and the statement passed without any policy changes. Instead, it was a list of data highlighting how well, in her opinion, the UK is growing (top G7 performer last year apparently), something that was unsurprisingly disputed by her opposite number Mel Stride.
Those of us in the pension world breathed a sigh of relief after two Autumn budgets bringing significant changes that will have a big impact on pension members in the years to come.
However, it does mean that realistically there is one more chance for the government to row back on its inheritance proposals, which take effect just thirteen months from now. The chance of any significant change to the rules is now sadly looking increasingly unlikely. Despite a plethora of recent policy u-turns, it appears the government is digging in on this one, with just a couple of tweaks having been announced to date.
The statement was of course delivered during a period of extremely troubled waters across the global stage and some of the economic data unveiled today is likely to already be out of date as the Middle Eastern crisis continues. This itself is a reminder that pensions provide opportunities but also risks to investors seeking to either make money through impulsive trades or avoiding losses by seeking theoretically safer havens.
The humble private pension plan remains a very tax effective vehicle. A statement particularly relevant on a day when data revealed that the CGT take is forecast to rise by 60% this tax year. Investors can seek high-growth opportunities safe in the knowledge their pension pots avoid any of these taxes.
However, it is also easy to act hastily, compounding what are in effect paper losses by jumping too soon. History teaches us that short-term events are usually smoothed away in the long term so sometimes it is safer to sit on the sidelines and watch before changing investment selections.
What is certain is that the role of a good investment adviser is highly relevant right now.
For the rest of us in the pension industry, we continue to monitor these turbulent times and today at least are grateful that the spring statement was for once, pretty boring!
Steve Berridge is Pensions Technical Services Manager at IFGL
