No turning back

The <em>News of the World</em> phone hacking scandal is growing by the minute, and threatens to chan

Each hour brings new revelations. More victims of phonehacking are being identified -- not just celebrities, or politicians, whose discomfort we have tolerated in the past, but real people, ordinary people like us, whose private moments of anxiety, grief and despair have been listened in on, and used to fuel tabloid tales.

Ever since allegations broke that an investigator working for the News of the World had hacked the phone of a missing teenager, and deleted messages, this story has taken on a new life. A Facebook group calling for a boycott of the News of the World has thousands of members. More significantly, advertisers, who have been bombarded with complaints from their customers, are deciding to withdraw their brands from the toxic environment of the News of the World -- for now at least. This is no longer a trifling matter of ethics only of interest to the London media bubble or the pitchfork-wielding Twitchunters; this is the only story in town, and it has angered more than just dripping-wet liberal Guardian readers. The shock and dismay reaches out much further.

You wouldn't know that from reading the Sun, though. They have covered the unfolding drama at their parent company News International, and their sister paper the News of the World, as if it were happening in another world -- a minor scuffle, but nothing to see here: please distract yourself with these other stories, rather than reading these few lines about our troubles. Apparently, it's business as usual.

Except it isn't. Newspaper readers aren't mugs; Sun and News of the World readers aren't mugs. It's wrong to think of them as a tide of dumb morons who don't understand the gravity of what's going on; a bunch of dribbling zombies who will happily skip down to the newsagents on Sunday and buy their favourite paper regardless of its alleged misdemeanours. It might be easier for us to see the world in those terms, but I tend to have a bit more faith in newspaper readers -- including News of the World readers -- than that.

The Sun might not be giving the phonehacking drama the attention that its newsworthiness deserves, but that doesn't matter: punters will be hearing the story on the radio, seeing it on television, reading about it on the net and seeing it covered elsewhere. The Sun's own website has carried discussions about the phonehacking fiasco today on its forums -- though some threads appear to have mysteriously disappeared.

Calls for a boycott of this Sunday's News of the World -- and wider calls for a boycott of News Corporation products -- are increasing. This is not just a few silly vexatious lefties on Twitter getting in a tizzy, as these things are usually depicted; this is much wider than that. Corporations who didn't worry about seeing their products placed in the country's most popular newspaper when the first phonehacking revelations came out are now thinking again. This is a big deal.

Perhaps News International hopes it can ride out the story; perhaps it genuinely doesn't understand the storm that has been created; or maybe a sacrificial figure is being prepared, someone to blame so the so-called mob can be satisfied and everything can carry on just as it always was.

So where we go from here? We don't trust the papers to police themselves. We don't trust the Press Complaints Commission to police the papers. We don't trust politicians to police the papers. Left with no-one to rely on but themselves, the campaigners have targeted advertisers -- and the efforts are paying off, in the short term at least. But what happens next will go some way to deciding how the media go about their business in this country.

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: products-and-investments/ pensions/pensions2015/