While making my way through cancellations to the LGPS conference , I was listening and watching presentations from Lloyds Bank on how they can offer those not in workplace pensions today, a way to save by using their bank (LBG) as a means to build up a pot. This was a version of “sidecar” except the research had focussed on how to keep those outside onside.
The Pensions Minister turned up to explain that part 2 of the pension reset was about to be launched and that it would focus on including those with inadequate savings plans.
I do not mean to sound sceptical but Lloyds views that you didn’t get very far explaining investment to people struggling to put money by, didn’t go down very well. I would suggest that we should have a listen to the Brazilian savers who have chosen to buy strips of retirement income to last them 20 years and get paid by a Government who makes use of the money as borrowing from savers.
It was good to hear everyone focussing on the problem – the fact that the state pension topped up by pension credit is not a satisfactory way for poor people to finance their retirement. But to suppose that there is a private sector solution to their problems is to take a very rosy view of the capacity of our banking and insurance system. Lloyds retail bankers made way for those who were to do the heavy lifting – Scottish Widows. They are owned by ~Lloyds and clearly keen to be the insurer of choice emerging from part 2 of the pensions reset.
My view, listening to as much as ~I could of the webinar is that Nest Insight are keen to expand on the sidecar to make a real difference to the very large number of people who would be savers for their retirement if a scheme was available to them. Lloyds/Scottish Widows clearly think that the focus group of self-employed are representative of those with the problem and are of the view that their solution does the job. The Pension Minister is keen to throw a few half eaten bones to those in the pensions industry keen to deepen and broaden auto-enrolment.
All of which is nice to do a webinar about and certainly gave Lloyds and Scottish Widows a platform to promote their social values. But I suspect that the big jobs for the Pension Minister right now are to come in the Committee Rooms discussing aspects of the Pension Schemes Bill.
