Now: Pensions has called for an extension of the scope of auto-enrolment through the removal of qualifying earnings, a reduction of the qualifying threshold for auto-enrolment and the introduction of auto-escalation. It also wants to see the new minister push for cross-party consensus on automatic transfers and consideration given to early access to a portion of pension.
Charity ShareAction has called for Altmann to maintain pressure on providers and asset managers over charges.
Hargreaves Lansdown’s Tom McPhail is calling for increased participation and contribution rates in pensions, including the self-employed. He has also called for an improvement to the shopping around at retirement process, whether for annuity or drawdown, an issue on which Altmann has been an outspoken voice for years. He also wants to see a balanced tax system which incentivises everyone to save for retirement, irrespective of their level of earnings, and the abolition of the Lifetime Allowance.
Now: Pensions chief executive Morten Nilsson says: “Ros Altmann has some big shoes to fill but she is one of the most recognisable voices in pensions. It is critical that she engages well with the industry and that she can help push through the many initiatives launched by Steve Webb that still need a lot work and consideration to be delivered successfully.
“The outgoing administration under Steve Webb played a key role in the revolution of Britain’s pension system, helping to push through major policy reforms in the state pension, implementing Osborne’s pensions freedom policy, and of course the introduction of auto enrolment.
“However there are a number of pressing issues that need to feature on Ros Altmann’s to-do list as the new Pensions Minister in order to ensure savers are able to adequately fund their retirement.”
ShareAction chief executive Catherine Howarth says: “Savers will benefit from having a Pensions Minister who sees the complexities of the pensions system and stands in their corner. Prioritising savers’ rights is essential as the government’s pensions reforms bring more and more people into the system. We look forward to working with the Minister who is committed to ensuring that the pensions sector works for the saver as well as industry”.
Tom McPhail, Head of Pensions Research: “Ros is inheriting a pension system which is in the throes of implementing 3 hugely significant reforms; auto-enrolment, freedom of access and the changes to the state pension. She also succeeds a popular and effective predecessor. Her experience in pensions will be a great asset to her and we look forward to working with her to continue the good work of the previous government.”
National Association of Pension Funds chief executive Joanne Segars says: “Pensions were a hot topic during the General Election campaign and will no doubt continue to be of interest in the coming Parliament. Pensions are also a complex topic where seemingly minor changes have major ramifications.
“It’s less than two months since the hard work of our industry helped ensure the biggest reforms in decades to the pensions system were implemented in what seemed record time. We’ve weathered the first wave but that was just the start – there’s much more to do to make sure savers’ interests are kept safe in the wake of the flood of recent reforms.
“We are looking forward to working with Dr Altmann. We want to share our expertise to negotiate the tough challenges that lie ahead – some of which may require difficult decisions. We encourage the Minister to consider the benefits an independent commission would offer. By providing impartial and independent expertise and analysis a commission would allow the Minister to make policy that stands the test of time.”
Barnett Waddingham senior consultant Malcolm McLean says: “I am not particularly surprised the decision has been taken to appoint Ros Altmann as the new pension minister, and not as previously announced as a proposed, separate new minister for consumer protection.
“It never made much sense to have her as a consumer minister – involved in addressing specific pension issues – in the House of Lords as well as a separate pension minister operating from within the Commons. The risk of either overlapping roles or alternatively some artificial division of responsibilities was self-evident and a single ministerial position was obviously more desirable. Having promised Ros a position prior to the election, the timing of which announcement was not completely clear, the Prime Minister probably felt committed to give her the job.
“Steve Webb was always going to be a difficult act to follow and it is good that we are going to have a new minister well versed in pensions and not someone, as happened several times prior to Mr Webb’s appointment, with little or no knowledge of the subject.
“Having an unelected new peer as the pension minister is bound to attract criticism from some quarters and Ros will have to accept that her position within Government will not now allow her the luxury of claiming to be an independent consumer champion and criticising conservative policies from outside.
“Having said that, I wish her well in her new role and I’m sure she will rise to the challenge and bring a wealth of knowledge and experience to it.”