Editorial: An elderly gentleman called me a few days ago at work. He was looking for someone who could help him access his pension pot.
The pensioner had mistaken Pensions Expert for a transfer advice company – perhaps understandable given the name.
All I could do was recommend that he seek a reputable financial adviser. Note the adjective.
What this call shows is the vulnerability and lack of support older people face at retirement and beyond, including when facing financial decisions.
It is encouraging to see politicians discussing the need for financial guidance, and pensions minister Guy Opperman bringing up the idea of a ‘midlife-MOT’, even if mandatory guidance is now not going to go ahead.
At the same time, however, it is disappointing that this discussion is taking place almost four years after pension freedoms were announced.
A stronger regulator was also discussed, with Prime Minister Theresa May vowing to stop executives “lining their own pockets” and leaving schemes to sink.
What all this tough talk means in concrete terms we might only find out in the spring, when the white paper on defined benefit sustainability is expected.
Dividend payments compared with deficit contributions might again come into focus. Work and pensions secretary Esther McVey has also hinted that creditor ranking should be looked at, to potentially bump scheme members up the ladder – something Work and Pensions Committee chair Frank Field has previously floated.
Let us hope any decisions and measures will be taken with a long-term view, so they will not be considered excessive and done away with shortly after their introduction, as happened with the minimum funding requirement.
While policymakers debate the framework for pensions, we would like to invite you to demonstrate how you excelled at delivering work on the ground. The 19th Pension and Investment Provider Awards are open for entries. Details can be found on live.ft.com/PIPA2018 and submissions sent until February 23. We would be delighted to receive yours, at pipa@ft.com.
Sandra Wolf is editor at Pensions Expert. You can follow her on Twitter @SandraCWKand the team @pensions_expert.
