While the Chancellor did not reveal anything in his speech, diving into the Red Book reveals some changes to pensions and savings.
Having said that, even here, we are not seeing anything radical nor detrimental to impact the pensions industry. Good news today (October 29), but that means the opportunity to dip in to the pension coffers remains for a future budget.
I was hoping to see the government restrict the ability of the Exchequer to meddle with pensions in future and provide some certainty to those looking to save. The simpler the system, and the fewer the levers future governments could pull, the more confident people could be around their future wealth.
However, reality prevails and other more pressing areas get priority.
The government will consult and explore opportunities for pension funds to invest in patient capital. This will provide an opportunity to boost potential returns on pension investments whilst providing a source of money for British technology companies seeking to grow to scale.
I remain keen on allowing people to see their pensions together in one place, and enabling an increasingly mobile workforce to engage with their savings during their lifetime.Various activities are set out, including exploration with the British Business Bank, Discussion Papers from the Financial Conduct Authority and work from the HM Treasury Asset Management Taskforce.
This looks like a win/win strategy, but will only be appropriate for those with the right attitudes to risk.
Interestingly, they also mention they will consult on charge caps "to ensure that it does not unduly restrict the use of performance fees within default pension schemes". Perhaps a softening of their previous stance on excessive pensions charges?
The pensions dashboard is still a focus. Or dashboards, according to the Red Book – an interesting use of the plural.
They are pressing ahead to look at detailed design and how an industry-led approach could harness innovation. There is even extra funding next year to help make this a reality.
I remain keen on allowing people to see their pensions together in one place, and enabling an increasingly mobile workforce to engage with their savings during their lifetime.
However, the plural in the Red Book is very interesting, perhaps suggesting that timings or commonality of DB and DC schemes being shown together is a pipedream. For simplicity and understanding I would advocate one single dashboard, and crucially that it should include the state pension.
Finally, in a very welcome move, the Chancellor is legislating to ban pension cold calling. Despite the lack of an EastEnders storyline to promote the issue, this is important to prevent fraudsters relieving people of hard earned savings.
Andrew Gilbert is head of life products at LV
