The power of Potter

Harry Potter has made it to the Kindle store, but he's not playing by the rules.

Earlier than expected, the Pottermore bookstore has opened, selling e-books of the entire Harry Potter series for the first time. The bookstore is unusual in a number of ways, not least because of the in-depth involvement of the author, J.K. Rowling, in the creation of the site. Her attention to detail, as well as the enormous clout that the Potter series wields, has enabled some ground-breaking changes to be made.

First, the biggest: the books will only be available from the Pottermore website – but will still be available on the Kindle. If you go to a Harry Potter book on Amazon, you now see the familiar selection of formats: kindle, hardcover, paperback and audio CD. On the right hand side, however, where you would expect to see the "buy now" button, you instead see this:

And below the description is a new blurb:

Harry Potter Kindle books can be purchased at JK Rowling's Pottermore Shop, a third-party site. Clicking on "Buy at Pottermore" will take you to Pottermore Shop, where you will need to create a separate account. Like all Kindle books, books purchased from Pottermore are "Buy Once, Read Everywhere" and will be delivered to your Kindle or free Kindle reading apps.

When that description says "buy once, read everywhere", it means it; your £4.99 (£6.99 for the last four books) gets you a download that works on Kindles, Sony readers, and all iOS devices.

Those who buy it on a Kindle can use Amazon's automatic download feature, but on some other platforms – notably the Apple ones – it will have to be "sideloaded"; that is, the reader has to download the file and sync it with their device, like we all used to do for songs.

This is all an astonishing testament to the power that Harry Potter still wields. In order to get his books on their site, Amazon were prepared to break pretty much every rule they had set for all normal publishers. When Macmillan wanted control over how its books were priced two years ago, it ended up pulling every book in its catalogue as part of the dispute. For the sake of seven children's novels, Amazon has given unprecedented control over to Bloomsbury and Rowling.

When the retailer eventually gave in to Macmillan and allowed it to pick the prices of its books, it made the policy global. That looks unlikely to happen in this case, but it's a rare breach in their armour. How other publishers respond will be important for the future of this young medium.

Hat tip to Paid Content

More Potter: All seven books are available online now.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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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/