Important pensions reforms might be thrown into doubt following the resignation of Guy Opperman as pensions minister, some trade consultants have warned.
Mr Opperman mentioned on Thursday morning he resigned with nice remorse, telling Prime Minister Boris Johnson “current occasions have proven clearly that the Government merely can not perform with you in cost”.
It later emerged Mr Johnson will give up as Conservative The chief after ministers and MPs made it clear his place is untenable, remaining as Prime Minister till a successor is in place.
Kate Smith, head of pensions at Aegon, mentioned Mr Opperman’s resignation “leaves pensions in turmoil”.
She mentioned: “He was personally main a lot of initiatives to enhance pensions engagement, together with the pension dashboard and the pension engagement season.”
Ms Smith added: “Initiatives to enhance member engagement with their pensions had been gathering momentum. These must proceed at tempo to assist enhance understanding of pensions.
“Crucially, the minister’s resignation might additionally influence the following steps for auto-enrolment, together with reducing the minimal age from 22 to 18 and basing minimal contributions from the primary pound, in addition to discovering options for the self-employed.
“Solely this week, the pensions minister recommitted to implementing these within the mid-2020s and instructed growing the minimal contributions from 8% to 12% over time.”
Jon Greer, head of retirement coverage at Quilter, mentioned: “(Mr) Opperman has been eager to drive buyer engagement and assist folks perceive their pension and get worth for cash.”
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, mentioned there have been widespread points of individuals not receiving their state pension on time or being underpaid.
She mentioned: “Some underpayments run into many 1000’s of kilos and stretch over a number of years – they’ve induced big monetary hardship to folks. Whoever succeeds (Mr) Opperman shall be beneath strain to repair these points quick.
“Auto-enrolment points may also be close to the highest of any new pension minister’s in-tray. During the last decade, we have seen 10 million folks enrolled right into a pension, however the subsequent steps should be put in place.”
Tim Gosling, head of pensions coverage at B&CE, supplier of the Individuals’s Pension, mentioned: “Mr Opperman’s departure from the position of minister for pensions and monetary inclusion is a loss for the pensions sector.
“Throughout his lengthy tenure, he is overseen a interval of real change and progress for pensions. He leaves a robust legacy but in addition a full in-tray for his successor, together with driving ahead computerized enrolment and launching pensions dashboards.”