AMNT: ‘Does anyone know the way? There’s got to be a way’

In January 1973, a pop group called The Sweet came to prominence with their chart-topping song Block Buster!. The chorus, which will provide the backdrop to this article, included the refrain:

“Does anyone know the way? Did we hear someone say: ‘We just haven’t got a clue what to do!’ Does anyone know the way? There’s got to be a way…”

from Block Buster!, by The Sweet (1973)

I wrote this article before the Budget announcement, but by the time you read it, the details will have been revealed. You will, at last, know which pension issues were covered, as well as having heard more about productive capital and any modifications to the tax system.

However, in my opinion, there is a substantial fault in the current Budget-setting system in the UK, which leads to panic among professional investors and savers alike.

The role of the OBR

Part of the problem can be attributed to the way in which the government and the Office of Budget Responsibility (OBR) interact with each other in the run-up to a Budget.

The OBR was set up in 2010 to be responsible for publishing economic and fiscal forecasts, independent of the government. What may have seemed a smart move back then has turned into a monster. (Editor’s note: And this was written before the disastrous leak last Wednesday!)

The reason for this is that the government has to write to request the latest economic data, and then has to wait three months for the reply. This wait for information causes a vacuum, into which industry, commentators and the media throw speculation – often with damaging consequences.

In effect, readers and listeners of the mainstream media and the ever-growing social channels can be frightened into taking actions that may be detrimental to their financial futures based upon hearsay, speculation and, in some cases, fantasy.

Because of the requirement to formally request data from the OBR, the date of the Budget was announced to the world on 4 September, 83 days before the actual event. During this period of anticipation and speculation, the pound has fallen against the dollar by some 3% and against the euro by around 2%.

These devaluations – based to some extent on guesswork of what will be in the Budget – are not in the interests of the UK or the average citizen.  But the process ties the government’s hands and allows this feeding frenzy of speculation to develop. And, as was always likely to be the case given the dire financial state the country finds itself in at the moment, much of the comment is negative. No wonder international markets take fright, as markets trade on sentiment.

Irreversible decisions

It is not just the professionals who get spooked. Ordinary savers and investors hear the comments and see the resultant falls in financial market confidence. I think it is crazy that those people who plan for their pension and aim to build up a decent retirement pot for their later life completely fall apart because of speculative reports about something that may not happen at all.

Figures for the total amount withdrawn from UK pension schemes since the beginning of September 2025 are not yet available in published reports, as data is typically released on a quarterly or annual basis. However, there are indications that there has been a significant surge in withdrawal requests due to speculation over potential tax changes. 

The latest data from the Financial Conduct Authority, published in September 2025, revealed that a record £70.9bn was withdrawn in the 2024-25 tax year. This represents a significant increase of 36% over the previous year, and a lot of these withdrawals were between the general election and the Budget announcement on 30 October 2024.

Sadly, it looks like the same pattern is being repeated. This raises the real question: do we ever learn?

Delivering more certainty

There may be some relief on the way. Moving onto more solid and generally positive ground, the Pension Schemes Bill, currently going through parliament, aims to reform the UK pension system to improve retirement outcomes through consolidation, greater value for money, and new investment opportunities.

Key changes include the automatic consolidation of small pension pots, mandatory asset pooling for LGPS funds, a new framework for assessing ‘value for money’ in defined contribution (DC) schemes, and a legal framework for superfunds.

The bill also seeks to give the Pensions Ombudsman greater enforcement powers and address specific issues such as the Virgin Media case. It has completed its first and second readings, will undergo scrutiny before a final vote in parliament on 3 December, and is expected to receive Royal Assent in 2026, with its measures being implemented over the following years. 

Importantly, this bill should create more certainty in the UK pensions world so that workers do not feel the need to withdraw their funds just in case a government decides to change the rules on taxation.

To conclude, I will finish where I started.

“Does anyone know the way? Did we hear someone say: ‘We just haven’t got a clue what to do!’ Does anyone know the way? There’s got to be a way.”

from Block Buster!, by The Sweet (1973)

There’s got to be a way – a way to end this annual madness for the good of us all.

Hopefully, the proposed changes in the Pension Schemes Bill will go some way to calming savers and easing this yearly scramble for the exit.

John Flynn is co-chair of the Association of Member-Nominated Trustees.