Romanticising the late Ted Kennedy

A great man, with a dark past

Here in the New Statesman offices, we are in the midst of drafting a leader that pays tribute to the "Lion of the Senate", Senator Ted Kennedy, who has died following a battle with a brain tumour at the age of 77.

Kennedy was undoubtedly a great man who, in the word of the BBC online obituary, "possessed the full mixture of the virtues, and the vices, that defined America's most famous political dynasty".

It is the "vices" that are often underplayed or even conveniently ignored when a great man or great politician (especially a Kennedy) passes away. But, to be fair, the BBC obit does refer to the infamous "Chappaquiddick incident" in some detail:

On 18 July 1969, he was at a party on the small Massachusetts island of Chappaquiddick with a group, including six women known as the boiler room girls, who had worked on his brother Robert's presidential campaign.

Kennedy left the party, supposedly to drive his brother's former secretary, Mary Jo Kopechne, to catch the last ferry back to the mainland but, instead, the car turned on to a side road and crashed off a bridge into a tidal creek.

Kennedy pulled himself from the upturned car and, swimming across a narrow creek, returned to his hotel without reporting the accident.

It was the following morning before local fishermen found the sunken car and discovered the body of Mary Jo Kopechne still inside.

Evidence given at the subsequent inquest suggested that she had probably remained alive in an air pocket for several hours and might well have been saved had the alarm been raised at the time.

Think about that for a moment. This great man, who was one of only 23 senators to oppose the Iraq war, so bravely and presciently, a key figure in helping Barack Obama win the 2008 Democratic nomination for the presidency and at the forefront of the ongoing progressive campaign for health-care reform in the United States, nonetheless was responsible for the wholly avoidable death of a 28-year-old woman. He served no jailtime, continued to be re-elected to his Senate seat until his death, and will now be lionised as a political saint across the liberal commentariat.

Would we be so forgiving, I wonder, were he not a Kennedy?

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: products-and-investments/ pensions/pensions2015/