In a surprise move the Tories have decided against putting a career politician into the job of Pensions Minister.
Instead they’ve handed the responsibility to campaigner Ros Altmann. I hope this is a good move. She has a good track record championing the underdog and hopefully will continue it in government.
She has a massive job on her hands with the new pension freedoms introduced last month and further extensions planned, including the right of annuity holders to cash in their policy.
There’s also the ongoing auto-enrolment process, under which every firm in the country should by 2018 have started a pension pot for employees.
On top of that there’s the radical changes to the state pension that will leave many of us having to wait until we’re much older than 65 to be able to claim.
For lighter reading:
http://quietroom.co.uk/general/fool2015 : With less than a week to go before the new ‘pension freedoms’ take effect, a Government body is today announcing a new tool to help explain the changes.
A Pensions-Related Information Lexicon is the latest publication from the Financial Office Of Language, a quango that brings together experts from the world of business communications to help explain pensions to normal people.
Here are some highlights from the first draft of the lexicon.
Strategy that aims to give the same return regardless of how much vodka your investment manager has drunk
Income for life that’s less than you’d hoped
Pet who inherits your money
Type of loan that leaves you shaken but not stirred
An income for people within the M25
Money you’ve spent on Breaking Bad DVDs
Responsibility for a bad investment decision
Scheme member who’s been stripped of their protection
To use retirement savings to buy a stately home
Usually a good thing. But check with your doctor, just in case
From April 6, something that is neither advice nor available
An amount approximately equal to the value of a sugar cube
To refuse to think about what you’re going to live on when you stop work
Drug taken to stop worrying about retirement
Pension questions that your ‘guidance specialist’ isn’t allowed to answer
Relating to inability to work due to exhaustion
Bovine retirement plan
Cause of pain on the path to retirement
Buying a tank with your money
A board game for people who can’t afford to do anything more interesting
The experience of listening to politicians with final salary pensions talk about how we all have to save for retirement