The Daily Mail Fabricates News - Not so new news

The news out today that the Daily Mail fabricates news is not such new news. Working in the pensions industry, their regular pension headlines have been the bane of many a pensions manager.

The Mail had the ability to pick up on a half-truth and fabricate a complete story out of it. The results were usually concerned members of pension schemes panicking that they have the right plans in place.

The negative Mail headlines for pensions caused unnecessary grief and may well have stopped employees from joining a pension plan they should have been part of.

The poor journalism on display at the Mail has found them out.

Time Will Tell

"The pensions industry has had over a year to prepare for the changes- and it is encouraging some firms have risen to the challenge. But others seem to be failing to move with the times...."

So says our new Pensions Minister Ros Altmann.

It's all to do with time, not 'moving with the times'. Every provider want to move with the times in the sense of moving with the market. But a year is an incredibly small time to turnaround one of the biggest pension changes in a century. Better not to offer than to get it wrong, as, I fear, many will, either in product or pricing.

Well done to Friends Life for not cashing in cheaply, but in reviewing what is best, and the timescales needed to do so. It may be resources. It may be the merger with Aviva. But better not to go there than to offer the product and fail.

The Daily Mail sees it as a U turn. Maybe it's more like parking up in a layby and letting the market mature first.

David Cameron needs to be careful in warning of a crackdown on providers failing to offer the 'freedoms'. Time (again) will tell whether those that have rushed to market have got it right.

A Vote For The Pensions Manager

Professional Pensions Magazine has started this year’s search for Pensions Personality of the Year. Was there ever a greater oxymoron? Pensions and personality. Not usually held in the same sentence. And yet…

When I started in pensions 38 years ago (first job Clerical, Medical & General Documentation Clerk- only staying for a short while to bring in some money. Not interested in pensions….), pensions really was a bit of a backwater. How times have changed.

Contracting out, Maxwell, the Goode Report, personal pensions, mis-selling, the Turner Commission, DC takeover, surplus and deficit, Auto-enrolment, pensions freedom…. And much more. Headlines in the Daily Mail and Daily Express on a regular basis. Scare stories mostly.  Much of it driven by an ageing population.

Nevertheless. A pensions personality? The well-known names tend to be self-publicists. I vote for the little known pensions manager working long hours for an employer that doesn’t understand and dealing with a government that can’t help but meddle.

Ten Pension Predictions for 2015

1.       A lack of clear and detailed regulation relating to the new pension freedoms.

As April draws near, many will be shouting loudly for clarity on detail, but it won’t arrive. Political parties will be in election mode and the April ‘new start’ will be hindered by poorly thought out regulation.

2.       Increasing pension scams.

Inevitable with the new pension freedoms. And frequent too, until the new systems get bedded in and the new government knows what to do.

3.       Appalling pension headlines.

Probably led by the Daily Mail as usual. People defrauded of pensions. People confused by the new freedoms. Anything to sell a paper.

4.       Quiet success with new products offering good customer value.

Probably won’t make the Daily Mail, but many providers will successfully navigate the new legislation and come up with quality, innovative products at a reasonable cost.

5.       New quality systems.

This has been ongoing since auto-enrolment was announced, but providers are making good strides with new data management tools integrated to pension provision. Again, unlikely to trouble the Daily Mail headline makers.

6.       Covenant worries.

No predictions here on a Russia collapse, Islamic militants and all the rest, but whatever happens in the world affects investments. And with that in mind, trustee covenant concerns regarding the remaining DB plans will increase.

7.       Adverts relating to not cashing in your pension.

As the new freedoms kick in, how long before we see adverts and articles relating to the need to think before you spend?  In Australia (a country we seem to be mimicking re pensions) it’s called ‘double dipping’ - people who spend their pension and then live off the Sate.

8.       Strengthened DC governance.

Whatever government is in power, I expect some firmer legislation around DC governance and management, akin to trustee governance.

9.       Pension Apps that work.

With a continued move to everything being in front of you on a smart phone, pension apps will come of age.

10.   Closure of small and medium pension schemes.

Whether DB or DC, there will be closures, mergers and buy-outs of smaller schemes, as the new legislation and auto-enrolment continue to change the landscape.

The Daily Mail Does It Again

Proof if ever it was needed that the Daily Mail can turn the most encouraging news into something negative. Something it has successfully done with pensions for years.

The ONS have just released their report which shows that life expectancy between the rich and poor is narrowing in the UK. Something to celebrate. We do care for everyone. We are a genuine democracy. We do have the best health service in the world. I could go on.... the message is we have a lot to be thankful for and a lot we are getting right.

So the report is good news, as reflected in the Financial Times headline 'Life Expectancy Gap Between the Rich and Poor Shrinks'. Not the catchiest of headlines- but it is the Financial Times!

Now read the headline in the Daily Mail, covering the same report: 'A fifth of baby boys living in the UK's poorest areas won't live to state pension age - official figures'. I guess they kept looking until they found the suitably negative statistic. I'm sure it's true. I'm sure we can do more. But the overall message is positive. Shame on them (once more) for the ability to whinge louder than the rest of us.