Skip to main content
search

Spring budget 2025: What it means for your pension

By March 27, 2025No Comments

Spring budget 2025: What it means for your pension

The Autumn Budget 2024 introduced several measures to address the UK’s economic challenges while supporting individuals’ financial well-being. If you’re saving for retirement, the updates could have a direct impact on your pension and long-term financial plans.

The budget updates tax relief, contribution limits, and pension rules to enhance flexibility and security. Changes to investment regulations and withdrawal options also aim to provide greater financial stability for retirees.

Here’s what you need to know about the latest changes and how they could shape your financial future in 2025.

1. Focus on Sustainable Investments

The government is reinforcing its commitment to environmental goals with substantial investments in energy efficiency and low-carbon technologies. This aligns with growing trends in sustainable pensions, making 2025 an ideal time to consider how your investments support environmental and social outcomes.

Creative Pension Trust’s default investment strategy, which invests members’ money unless they make their own investment decisions, aims to provide positive outcomes for both people and the planet. Explore how your pension with us is invested by reading your Investment Choices Guide, which you can download from the Creative Pension Trust Member Portal.

2. Increased State Pension and Triple Lock

The State Pension remains protected under the triple lock, ensuring it rises in line with inflation, average earnings growth, or by 2.5% – whichever is highest. In April 2025, it’s expected to rise by 4.1%, offering additional security to retirees and those nearing retirement.

While the rise provides some assurance, it’s essential to factor this into your broader retirement strategy. Workplace pensions, like those offered by Creative Pension Trust, play a critical role in complementing the State Pension.

3. Encouraging Pension Growth Opportunities

The abolition of the Lifetime Allowance (LTA) in 2024 removed previous barriers for savers with larger pension pots. In 2025, this change will allow you to grow your savings tax-efficiently without worrying about breaching a cap.

For high earners, this presents a significant opportunity to boost retirement savings. Use Creative Pension Trust’s tools to assess your long-term plans and make the most of this flexibility.

4. Supporting Financial Well-being with Increased Allowances

The pension Annual Allowance increase to £60,000 in 2024 continues to provide valuable opportunities for savers in 2025. Whether you’re looking to build a robust pension fund or maximise tax relief, ensuring your contributions are aligned with this higher limit is key.

Log into your Creative Pension Trust Member Portal to review your contributions and see how they align with your financial goals.

Next Steps: Make 2025 Your Year for Financial Resilience

The Autumn Budget 2024 and preceding changes create opportunities for pension savers to enhance their financial resilience. Here’s how Creative Pension Trust can help you navigate these updates:

  • Creative Pension Trust Member Portal: Track contributions, review investment options, and stay on top of your savings.
  • Expert Support: Access guidance and tools to ensure your pension strategy reflects these latest changes.

Building a Sustainable Financial Future

With measures to support sustainable investments, improve financial equity, and encourage long-term savings, 2025 is the perfect time to take control of your retirement planning. Creative Pension Trust is here to help you make the most of these opportunities and build a secure future.

Log in to your Creative Pension Trust Member Portal today to explore your options and adjust your strategy. For more information, visit our Member Help Centre or contact our support team.

Skip to content