Time for some “AE” housekeeping

Guy Opperman clearly enjoys twitter, he has mastered the production of a twitter thread (a series of micro-blogs that can develop an argument without fear of interruption). Here is the latest, which while being overly triumphal, contains some strong messages and poses some interesting questions (which this blog will pick up on). Here is the thread.

My proudest achievement, and number 1 goal since being in this amazing job, has been to ensure that the rollout of Automatic Enrolment is a success.

The transformation is off the charts: the UK 🇬🇧 has made the jump to 8% workplace savings in a way few thought possible 2/

— Guy Opperman (@GuyOpperman) April 28, 2022

Our approach is being copied. I have met / discussed at length the difficulties, logistics and benefits of #AE workplace pensions with many of our international partners, including my opposite number, the Minister for Pensions in China. Ireland is about to begin a system of AE 4/

— Guy Opperman (@GuyOpperman) April 28, 2022

Clearly covid and it’s impact on business and employer costs, and wider fiscal policy, have delayed that that … but it will happen. There remains a genuine issue with small pension pots that has to be grappled one way or the other soon. I am grateful to the working group and 6/

— Guy Opperman (@GuyOpperman) April 28, 2022

The launch of the #pensiondashboard will help accelerate this process. Those who wish to delay dashboard, have not invested and got their data in order, or who don’t want to join as others are, will find zero sympathy from me, or anyone at DWP or regulators. 8/

— Guy Opperman (@GuyOpperman) April 28, 2022

Pensions awareness remains a massive issue: and I am grateful to the industry, @ThePLSA and @BritishInsurers who I met this week to put flesh on the bones of our joint plan to amplify members understanding way way more 10/ https://t.co/7cYK3dId3y

— Guy Opperman (@GuyOpperman) April 28, 2022

Workplace pensions are an amazing success story. We need to increase the consumers understanding and help them manage the journey ahead. With thanks to forerunners @PensionGeeks and @pensionsaware @ScottishWidows that is what we are collectively going to do in the yrs ahead 11/

— Guy Opperman (@GuyOpperman) April 28, 2022

I like the Minister considering his Chinese counterpart, like all pension ministers, Guy Opperman has to speak in code and like the Chinese, he knows exactly how to embed political messages in the grandiose rhetoric of the mandarin!

Mandarin

Guy

So what is the message. Jo Cumbo smelt it out:-

Has the Govt’s ambition to implement 2017 automatic enrolment review reforms in the “mid 2020s” been pushed back? The Minister last commited d to this timetable in September 2021. https://t.co/Qs30pNc799 https://t.co/p40cGF3zOU

— Josephine Cumbo (@JosephineCumbo) April 28, 2022

The thread makes it clear through its sequence where the Minister’s head is on this. He is not dishing out more auto-enrolment contributions to the ABI (who profit from bigger pots) until the ABI and other pension providers

A. Find a way to consolidate small pots

B. Show they can get their data on the pension dashboard.

To use a household analogy, “no second course, till you’ve done the washing up”.

The pots are clearly back in the sink and they need to be cleaned up for the dashboard and reduced to manageable proportions through some energetic housework.

Like all good mandarins, the Pensions Minister has some superpowers which can best be hinted at. Twitter threads are a happy way to hint at them.

Ministers have super powers