Unity on climate change has never been more urgent

Learning from the devastation in the Philippines

The rising death toll from Typhoon Bopha which hit Mindanao in the Southern Philippines this week highlights the vulnerability of communities around the world to the impact of climate change and serves as a timely reminder to government representatives currently at the UN Climate Change Conference in Doha of the need for urgent collective action.

I witnessed myself the devastation that such violent storms can cause during my visit with UNICEF UK to Mindanao just a year ago in the aftermath of Typhoon Washi which killed thousands of people. Seeing the devastated area and talking with the government, NGOs and survivors in the refugee shelters it was clear that despite the tragedy reconstruction was already underway. During my visit I was told that typhoons and tropical storms were less common in the south of the country but climate change means that more areas are becoming increasingly vulnerable. I can’t help but think about the people I met who had lost everything and were trying to rebuild their lives. As a result of climate change those same people may now be facing situations such as this with increasing regularity. 

It is the most vulnerable in society who are likely to be the ones who will be the most affected by these events. UNICEF estimates that there are approximately 756 million children living in the ten countries most vulnerable to climate change and at least half of all people who die in disasters are children. They experience unimaginable fear and confusion as they attempt to deal with the loss of the most stable aspects of their lives, whether that is family members, their home, regular meals or schooling.

The Philippines is listed as the sixth country in the world most vulnerable to climate change and the response to Typhoon Bopha has been a good example of how preparatory measures can save lives. The people in affected areas had been warned by phone messages, the media and the government. It is vital to ensure the most vulnerable, including children, are adequately prepared and the new global institution for finance, the Green Climate Fund, should be constructed in a way that ensures it helps to deliver protection for children in the most vulnerable countries.

As international leaders meet this week at the 18th Conference of the Parties of the United Nations Framework Convention on Climate Change (COP18) ambitious action is needed to ensure global emissions are reduced. We cannot afford not to recognise the impact of climate change on the lives and wellbeing of those in developed and developing nations alike. Governments must also ensure that they mobilise new and additional funds for 2013 and beyond to meet the global goal of $100bn a year by 2020. It is essential that the resources are available for the adaptation measures needed to ensure that children in all nations do not grow up in a world of further climate extremes. I hope that COP18 will put the needs of children at the heart of initiatives to limit the damage of climate change.

As people in the UK battle to save their homes from floods, families in America seek to repair the damage wrought by Hurricane Sandy and this latest typhoon claims further lives in the Philippines the importance of our commitment to address climate change has never been clearer. It has confirmed to me once again how we are united in our differences. The capacity of people to weather the storm must be equal no matter on what continent the storm lands and the current UN negotiations provide an important opportunity to demonstrate a united response to the global problem of climate change.

Tony Cunningham is Shadow International Development Minister, MP for Workington

Damage wrought by Typhoon Bopha in the Philippines (Getty Images)
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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/