Mixed metaphors in the AV race

Is AV a horse race or a football match? Or is it just whatever the plebs can understand?

What if a general election were a horse race? No, too complicated. Fences. Horses and jockeys. Difficult to understand. I'll try again. What if a general election were a 100-metre race? Mmm, no, too tricky. Scope for misunderstandings. Lanes cause problems. No, that won't do. That won't do at all. Starting pistols? Photo finishes? All far too hard to understand. Give me a minute.

OK, let's say a general election is just like a cricket match. And the ball is your vote, and the stumps are the winning margin, and you bowl your vote at the winning margin, and . . . no. No, no, no. This isn't helping at all.

I'll try again. Nice and simple. Because you're stupid. Because you're too thick to get the idea of voting, and you need it turned into something that you can understand, because you hate the idea of politics and everything that goes with it; and besides, you don't have the time to think about facts, or problems, or complexity, or nuance – you're just a tot in a crib, waiting for Daddy to tell you a story. You don't want anything other than a happy ending.

Let's face it, you're thick. You're dumb. You're barely more than a dribbling infant slamming its tiny hands into a bowl of goo because you like the way it splatters. That's the level we're trying to pitch this at. Because that's all you're capable of getting. Voting is something that you're afraid of because you're a dummy, and unless we talk to you about it bright colours AND CAPITAL LETTERS and smiley faces, you're not going to get your oh-so-pretty little heads around it, are you?

OK. So. Right. Imagine you're at a football match, right, and the team you wanted to win didn't win because someone else wanted the other team to win, even though they actually wanted your team to win. Yes . . .? No. No, we really aren't making any headway.

OK, let's see if we can try and nudge you in the right direction another way. What if someone you liked thought about voting in a particular way; what would you think then? Look, here's someone famous, them off from off of the television. What do you think now? They look pretty bright, don't they, and they got famous for writing, or being funny, or running around and jumping over hurdles, or whatever it is; and look, they think this way. Or, if that won't convince you, look at these bad people, people you don't like. They're bad people, and they think this way. Now what do you think?

Forget about all those thoughts about things being slightly more complicated than they might at first appear. Try to forget, if you can. It's a miracle you don't burn yourself on the toaster every morning, really, but there it is; you've made it through life this far without too many problems, and so you get given a vote, to do with as you wish. It's just that, well, you don't want to do all that boring stuff about democracy, and representation, or the comparable benefits of different voting systems, do you? You don't want to think about all that. You've got better things to do.

So let's just talk about things in a simplistic, infantile way that you can comprehend, even in your tiny squashy noggin, because you're frankly not bright enough to want to know about anything that's slightly more difficult to grasp than a slap in the face with a gardening glove. Just you leave it to us to tell you how to do it. And there you are! Democracy will be improved unimaginably, just by you putting your vote here. Or there. Wherever we've told you to put it. Because it's the right thing for YOU.

Patrolling the murkier waters of the mainstream media
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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: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/