Welcome to first Corporate Adviser podcast, the first in a series looking at the small pots and pot for life reforms and the implications for pension schemes, members and their advisers.
In the first podcast, hosted by John Lappin, we look how and why the political debate changed from an important albeit relatively small reform, to one that could bring significant or even seismic change to the sector but also at the prospects for the reforms continuing in this form potentially under a new government.
“If that becomes your North Star, then you need to drive the consolidation of all the small pots a lot faster,” he tells the pod.
LCP partner and, of course, former pensions minister Steve Webb discusses why small pots were not addressed earlier. He agrees with the point about scale and that the government has become convinced that ‘big is beautiful’ when it comes to pension schemes.
He suggests that what is currently mooted is not entirely coherent with significant builds required around dashboards, small pots with clearing houses and then another infrastructure or central hub around member choice. He has particular concerns around the sequencing of these changes.
He believes the one coherent solution remains pot follows member which goes with the grain of what is being done at the moment and doesn’t disrupt the employer.
For an expert public affairs view, we then talk to H/Advisors Cicero head of financial services policy Tom Harrison who says that policy shifts of this nature are rare – proposals are usually watered down – but it reflects a government looking for all sorts of ways to drive growth.
Given that an election may bring political change, he suggests there is a broad consensus around many reforms. That said, a lot of the trade offs have not been addressed in detail. Labour’s pension review, which is under the shadow Treasury team, not Work and Pensions, is something the pension sector should watch closely.
