Facebook launches "Graph Search": future of the web or stalker tools?

And what does it mean for the bottom line.

Facebook yesterday demonstrated its new service, Graph Search. The company is proposing to let people search their "social graph" to find new, useful information. (The social graph is the network of relationships between you, your friends, and their friends. Sadly, it is not a search engine for graphs.)

The company is positioning the search service as a competitor to, well, everything. Search for "music my friends like" – graph search is designed to take natural language input – and you've got something which can take on Last.fm or This is My Jam. Search for "restaurants in London my friends have been to" and you've got a rival to Foursquare. "Friends who work for PWC" could fill the same niche as LinkedIn, and "Photos taken before 1995" offers something which only Flickr does half as well.

The potential is huge, and, judging by Steven Levy's exhaustive behind-the-scenes account (impressive too for the total absence of leaks it resulted in – the man can keep a secret), Facebook is betting the farm on it.

But there're two potential speed-bumps ahead for the company. The first is that perennial Facebook bugbear: privacy. The company is careful to emphasise that only things which are public or shared with you will show up when searched for — but that relies on users understanding how privacy settings actually work, which has historically not been the case. That's not Facebook's fault per se, but it also won't save them from a user back-lash. And as the company has learned before, while it recognises a binary "public/private" divide, most users don't think in such black-and-white terms. The launch of the News Feed, way back in 2006, was widely opposed by existing users, because despite merely aggregating content which was already visible elsewhere, it felt like an infringement of privacy.

Consider: Person A rejects friend requests from Person B who is a creepy stalkerish character. They nonetheless have several mutual friends. Can B search for "Posts by A which friends have commented on"? (Those posts would be visible to B now, but not aggregated in any one place). Similarly, someone who checks into a specific location on a regular routine might not appreciate that suddenly being aggregated together, making the routine clear to all.

Where privacy is emblematic of Facebook's past concerns, the other problem Graph Search faces strikes at the heart of where it's future problems lie. The usefulness of the service is directly tied to people using Facebook the way Facebook wants them to. That means liking a lot of things; filling in all your personal information, and keeping it up to date; checking in every time you go out; and making all of that public, or at least softening your privacy settings.

For many, Facebook has become a glorified PA: it's a way to contact friends whose other details you have lost, and a way to bulk-invite people to social events, but as a social network, its utility is fading. Graph search doesn't seem to do anything to reverse that trend, because it doesn't offer any incentives to change the data you put in to Facebook — just change how you get other people's data out.

Of course, hovering unspoken during the launch is the key question: will this make more companies want to advertise on Facebook, or increase the amount the company can charge for space? The technology underpinning the search will almost certainly help the company provide better services to advertisers, but being useful — to admen or end users — doesn't necessarily translate into revenue.

What the service does demonstrate is the foresightedness of Twitter's broadsides against Instagram, the Facebook-owned photo network. While Instagram was only using its Twitter connection to enable people to export their relationships to the service, Graph Search reveals that the knowledge of those links — the literal social graph — can have intrinsic value. By limiting Facebook's access to Twitter's information, the latter has guaranteed that the former will have to try that little bit harder to get useful results from infrequent users — as well as reserved the possibility that Twitter can launch their own version.

Photograph: Getty Images

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: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/