Newly re-elected Prime Minister David Cameron appointed Altmann, a pensions and retirement policy expert, to his government as pensions minister on Thursday to replace Steve Webb, the Liberal Democrat MP who lost his seat in the election.
“We welcome the appointment of Dr. Ros Altmann to the role of pensions minister and hope that she will prioritise the rapid introduction of a new “cheap and cheerful” regulated advice regime,” Loney said.
Loney also called for the new minister to prioritise a review of the current system and levels of tax relief available on pension contributions before any changes are made, and he called for legislation to make an open market approach to annuity sales compulsory so that customers can access the best deals available.
He said the new minister should advocate a gradualist approach to increasing the level of contributions that employees make to auto enrolled pension schemes to help savers lift savings levels to around 15% of income – a level seen as necessary to properly provide for later life.
Pension advice key
Chris Hannant, director general of Association of Professional Financial Advisers (APFA) said the organisation was pleased to hear of Altmann’s appointment.
“She has been an advocate for the benefit of financial advice. We very much look forward to working with her as the recent pension reforms bed in, ensuring that those people who need professional financial help to navigate these changes, can get it.” Hannant said.
“Ros Altmann has some big shoes to fill but she is one of the most recognisable voices in pensions,” said Morten Nilsson, chief executive of NOW: Pensions, a subsidiary of one of Europe’s largest pension funds, the Danish pension scheme ATP.
“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,” he said.
Alan Higham Retirement Director at Fidelity Worldwide Investment called Altmann to focus on the risk of pension fraud and do more to help prevent it.
“Resources must be found so that when attempted frauds occur these can be easily reported to the police/regulators who will investigate and take action, “ he said.
Higham also called for a review to identify the best way to encourage greater saving beyond the 8% required by 2018 from auto enrolment and called on Altmann to work out how to ensure pension freedom does not cost the tax payer huge sums in future welfare payments should people overspend.
