Pensions Minister Torsten Bell has urged the industry to put savers’ confidence ahead of publicity, warning that speculation over potential tax changes can cause real harm.
Speaking at Pensions UK’s Annual Conference in Liverpool last week, Bell said he had seen “some tax speculation” that had been unhelpful for pension savers. He criticised what he described as irresponsible behaviour by some in the pensions sector and its commentators – accusing them of pursuing publicity through claims that could scare consumers.
Such claims were “very misleading”, he added, and had not merely generated coverage but “changed outcomes for people”. Bell did not name organisations, but said rebuilding trust meant avoiding a “cheap route to publicity” and instead strengthening the wider “brand of pensions”.
The minister drew applause from some of the audience when he suggested that pension providers’ PR teams should think more strategically about the long-term interests of the people who work in the industry.
Bell said the issue extends beyond this year’s Budget debate. His wider speech focused on rebuilding trust in a pension system that many people doubt will provide a decent retirement.
He argued that providers, government and the wider industry all have a role in giving savers good reasons to trust pensions.
Bell’s argument was that communication should help savers make better decisions, rather than serve as a vehicle for short-term publicity.
With reforms to the State Pension and private pension adequacy still ahead, Bell argued that an industry built on long-term saving should avoid contributing to uncertainty before policy decisions have been made.
This article was written by Rhotic Media‘s James Hetherington.