Pensions: four changes to look out for

No doubt the new pensions minister Ros Altmann is already being bombarded by industry experts telling her just what her first move in the new role should be, but I'm sure she has her own ideas.

Altmann has fought tirelessly for a better deal for pensioners and savers for many years and has had a huge impact on pension reforms in recent years, including charge caps on workplace pensions, pension transfers and ending discrimination against older people.

However, despite the huge changes we've seen to pensions under the last government there is no doubt Altmann will have her own plans.

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Charge cap extension

The 0.75% cap on workplace pension charges that was introduced by the old pensions minister Steve Webb could be extended to include all pension and retirement products. Altmann has always been a fierce critic of rip-off products and an opponent of many insurance companies so it wouldn't come as a surprise to see the screws tightened and their margins shrink.

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State pension changes

Altmann was outspoken when Webb announced he was introducing a flat-rate state pension. She was concerned about the thousands of women retiring after April 2016 who would miss out because they had not paid enough national insurance and didn't have enough time to do so.
For many women in their 50s and 60s the situation seems doubly unfair as they have seen their pension age increased twice. Could we see some sort of transitional arrangement agreed for women who fall short of receiving the full flat-rate pensions?
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Annuities for sale

Earlier this year Webb announced that he would be happy for retirees who have already bought their annuities to trade them in for cash as part of an extension of pension freedom.
Altmann cheered this news; while she is not a critic of annuities she has been vitriolic about the way in which they were sold in the past and the fact that retirees were not provided with the best deal.

After the initial announcement by Webb news of an annuity market quickly ground to a halt, possibly because there is no market for them as yet. However, Altmann could be one to retrieve this idea from the long grass and actually make it work.

Education

While Altmann believes everything should be done to protect consumers, she does acknowledge that people need to understand financial products and services better if they are going to make the most of their money.

While Pension Wise has been rolled out for older people close to retirement to teach them about their solutions on offer for funding their retirement, Altmann has in the past called for finance to be included on the national curriculum.

So, say hello to your new pensions minister, I'm sure she'll be just as vocal and revolutionary as her predecessor.

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