FT letter on US pension reform proposals - Ros Altmann

    Ros is a leading authority on later life issues, including pensions,
    social care and retirement policy. Numerous major awards have recognised
    her work to demystify finance and make pensions work better for people.
    She was the UK Pensions Minister from 2015 – 16 and is a member
    of the House of Lords where she sits as Baroness Altmann of Tottenham.

  • Ros Altmann

    Ros Altmann

    FT letter on US pension reform proposals

    FT letter on US pension reform proposals

    FT letter on US pension reform proposals

    by Dr. Ros Altmann

    (All material on this page is subject to copyright and must not be reproduced without the author’s permission.)

    I was astounded
    to read the Comment piece on pensions scaremongers (Nov 8th),
    recommending that US Social Security deficits could be easily cured
    by indexing pensions to prices, rather than wages and allowing
    people to contract out of the state system into private investment
    arrangements. Is this not exactly what we in the UK have tried to do
    over the last 20 years or so? Given the yards of space your paper
    has dedicated in recent months, to detailing what has gone wrong
    with the UK state pension system, and the urgent need for reform, it
    seems somewhat strange to read a recommendation that the US should
    adopt this very system.

    Even the Tories, who broke the earnings link, are now calling for it
    to be restored and contracting out has failed millions of people,
    who are finding that they will receive less from their private
    pension than they would have done if they had stayed in the state
    scheme. Furthermore, our own ‘shareholder culture’ has left many
    pension funds woefully short of the assets required to pay pensions.
    The UK experience clearly shows that such palliatives, which may
    have short term appeal, are certainly not the answer to pension
    problems in the longer term.

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