Where now for the west's mission in Afghanistan?

Cameron meets Obama for talks after US soldier massacres civilians in Kandahar.

David Cameron could not be travelling to Washington in grimmer circumstances. The shocking news that a lone US soldier killed at least 16 civilians, nine of them children, in a shooting spree on Sunday means that US-Afghan relations have reached a new low.

The more one hears about the story the worse it gets. According to the New York Times, "The man gathered 11 bodies, including those of 4 girls younger than 6, and set fire to them". He may have been acting alone but that will not reduce the risk of reprisal attacks. For many, the massacre will confirm their view that the occupation is irredeemably brutal. It was only three weeks ago that US troops were found to have burned copies of the Qur'an at the main Nato base, an act that led to protests in which six American soldiers were killed.

The dry commitment by General John Allen, the commander of US and Nato forces in Afghanistan, to ensure "that anyone who is found to have committed wrongdoing is held fully accountable" is unlikely to dampen tensions. In a statement on its website, the Taliban has vowed to "take revenge from the invaders and the savage murderers for every single martyr".

It declared:

A large number from amongst the victims are innocent children, women and the elderly, martyred by the American barbarians who mercilessly robbed them of their precious lives and drenched their hands with their innocent blood.

The American terrorists want to come up with an excuse for the perpetrator of this inhumane crime by claiming that this immoral culprit was mentally ill.

If the perpetrators of this massacre were in fact mentally ill, then this testifies to yet another moral transgression by the American military because they are arming lunatics in Afghanistan who turn their weapons against the defenceless Afghans without giving a second thought.

Coming so soon after the deaths of six British soldiers last week, there is understandable concern that UK troops may be caught in the fall-out. All of which means that the onus is on Cameron to restate the case for Britain's continued presence. As the shadow foreign secretary, Douglas Alexander, notes in today's Guardian, the PM came to office promising that Afghanistan would be his "number one priority", but it is now eight months since he made a parliamentary statement about it. He writes: "As the prime minister heads to Washington my concern is that he has an end date, but still no end state: no realistic vision of what will be left behind. And in these critical months the scale of military sacrifice does not appear to be being matched by diplomatic effort."

With the fighting likely to intensify in the run-up to the 2014 withdrawal date, the question confronting western leaders is what sort of country they will leave behind. For now, it is likely to be one even more blighted by violence, corruption and the drugs trade. Consequently, a growing number of voices on the left and the right contend that the benefits of remaining are outweighed by the costs. It is up to Cameron to persuade them otherwise.

George Eaton is political editor of the New Statesman.

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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/