Following today’s news of the appointment of Torsten Bell as Pensions Minister, pensions experts have been sharing their reaction to the announcement as follows:
Jon Greer, head of retirement policy at Quilter said: “Torsten Bell’s appointment as a joint Parliamentary Secretary in HM Treasury and Parliamentary Under Secretary of State in the Department for Work and Pensions signals Labour’s intention to place pensions policy at the heart of its economic agenda.
“Bell’s background as an economist and his tenure as chief executive of the Resolution Foundation provides him with a solid background for the pensions brief and will enable him to grasp the complexities of a sector that is so critical to the financial well-being of millions.
“While Bell has previously advocated for radical pension tax reforms – such as moving to flat-rate pension tax relief and capping the tax-free lump sum at £40,000 – these ideas often fail to account for the practical realities facing savers who have relied on the stability of the existing system.
“That said, his dual appointment, like Reynolds role, across Treasury and DWP reflects the broader implications pensions have for the economy and the public finances. Labour’s commitment to the state pension triple lock, despite fiscal constraints, will test his ability to deliver on manifesto promises while ensuring long-term sustainability.
“Bell’s appointment also underscores a perennial issue, which is the revolving door of pensions ministers. This role, pivotal to the retirement prospects of millions, has seen a succession of short-lived appointees, each struggling to leave a meaningful legacy.
“The pensions industry is eager for a minister who can combine vision with execution and remain in post long enough to deliver meaningful reform.“
Kate Smith, Head of Pensions at Aegon has also shared her comments on the appointment of Torsten Bell as the new Pensions Minister saying: “We welcome Torsten Bell’s appointment as new Pensions Minister, replacing Emma Reynolds. Bell’s appointment is unlikely to ‘ring’ in any immediate pension changes to the Government’s pension and growth agenda given most initiatives bear the Treasury footprint where Reynolds now resides. Bell will have his hands full due to the extremely busy and ambitious pensions agenda, including the ‘Unlocking the UK pensions market for growth’ which closes tomorrow and the Pension Schemes Bill scheduled for the Summer.
“Although this is a change in Ministerial leadership, we expect little change in the strategic policy direction. But we would welcome clarity on when the Government will return to the ‘adequacy’ phase of its Pensions Review. This is also an opportunity to carry out a review of all the policy initiatives in flow, considering the sequencing which works best to deliver the government’s objectives without causing customer confusion or market chaos.”
Sophia Singleton, President of the Society of Pension Professionals, said; “Torsten’s appointment comes at a particularly important time for pensions policy with various consultations in train, Dashboards, Value for Money and other projects mid-progress and a much-needed pensions adequacy review having appeared to have stalled under the previous Minister. We therefore look forward to working with the new Minister to drive forward these important initiatives and implement the most effective, evidence-based pensions policy possible.”
Sharing her thoughts on Thursday 16th January, Karen Tasker, pensions audit partner, RSM UK said: “The frequent change of pensions minister adds a level of uncertainty to the pensions industry, and to pensions savers, who are trying their best to plan for their retirement against a backdrop of ever-moving goalposts. We’d like to see the government establish an independent pensions and savings commission which would look to maximise pensions returns long-term. Collaboration by all parties should avoid the short-term knee jerk policy changes that can derail planning for many. Today’s news of the possible reform or replacement of the triple lock with a less costly mechanism is another example of such changes.”