Pensions

Thursday

Martin Vander Weyer

Warning: top-performing funds are highly likely to contain tobacco

Axa will no longer invest in the tobacco industry: the French insurance giant will sell €184 million of shares and gradually reduce its €1.6 billion bond holdings in the sector. No surprise, given Axa’s role as a health insurer and the oft-repeated statistic that smoking kills six million people a year; indeed, you might think any health-related investor would have taken the decision years ago. Except that cigarette-makers have been stellar stock market performers since the beginning of the century: British American Tobacco’s shares have multiplied in value a dozen times while paying rich dividends, and Imperial Tobacco (now Imperial Brands) has been almost as good. MSCI’s global index of

Thursday

Martin Vander Weyer

Have we sacrificed a quarter’s growth to answer the European question?

Has the shadow of Brexit already cost us a slice of GDP — and if so, is it a blip or an omen? The Office for National Statistics says UK growth was 0.4 per cent in the first quarter of this year, down from 0.6 per cent in last year’s final quarter. And we can’t blame the neighbours, because the eurozone upped its game from 0.3 per cent to a positively breathless 0.6 per cent — with even France trotting in ahead of us at 0.5 per cent. We still look stronger on the jobs front, mind you, with our unemployment rate, at 5.1 per cent, well down on a year ago

Thursday

Toby Young

My confession: I began dodging tax aged eight

As someone who still entertains hope of becoming a member of Parliament one day, I’d better come clean about my own tax affairs. It’s a torrid tale, as you’d expect, but rather than wait for my political opponents to winkle the story out of me bit by bit, I thought I’d get it all out in the open. I blame the Cub Scouts for starting me on the wrong path. As a boy of eight, I was an eager participant in bob-a-job week, which involved going from door to door on my street offering to do odd jobs. I turned all the money over to my Cub pack, but I

Monday

Isabel Hardman

Iain Duncan Smith given pointless grilling on how he sleeps and jobs fairs

Labour had an aggressive session at Work and Pensions Questions today, attacking the Conservatives on disability benefit cuts, and on whether they had any morals. Normally questions in the Commons are supposed to be about the design of policies, but today Owen Smith appeared to be taking a leaf out of Jeremy Corbyn’s book, asking a question he had crowdsourced: ‘Before I came here this afternoon, Mr Speaker, I asked disabled people what question they would like to put to the Secretary of State and one answer stood out and it was quite simply: how does he sleep at night?’ Funnily enough, Iain Duncan Smith didn’t supply any details of

Thursday

The Spectator

The ringfence cycle

By now, George Osborne had hoped to have completed his austerity programme. Instead, he finds himself making what is, still, the most ambitious round of cuts of any finance minister in the developed world. The Chancellor is paying the price for the leisurely pace that he decided to take in the last parliament – due to his habit of buying time by deferring pain. The Chancellor still doesn’t seem to be in too much of a rush. In his spending review statement this week, he decided to spend some £83 billion more over the parliament than he said he would at the general election.  Foreign aid is not just protected, but

Thursday

Mary Dejevsky

The war on pensioners

Who controls the media in Britain? Depending on your political outlook, you might answer: the Conservatives, the liberal-left chattering classes, Rupert Murdoch or the BBC. But if the coverage of the elderly is anything to go by, then we can perhaps agree on one thing: the headlines are decided by a cohort of 25- to 45-year-olds who believe that other people’s parents and grandparents — a.k.a. Britain’s pensioners — have stolen their future, dashed their dreams and nabbed all the plush property. How else to account for a headline such as ‘No pay rise? Blame the baby-boomers’ gilded pension pots’ and a plethora of articles maintaining that pensioners have ‘never had

Thursday

Ian Cowie

Five questions to help you take control of your pension

If you want something done properly, it often pays to do it yourself. So it must be good news that as of 6 April, when George Osborne’s pension reforms take effect, it will be easier than ever to run your own pension fund, because you won’t be forced to retire as an investor when you cease to work for a living. Instead, everyone — not just the rich — will be allowed to retain ownership of their life savings and try to live off them by means of what is known in the jargon as ‘income drawdown’. But is a DIY pension right for you? Institutional funds are buying government

Monday

Isabel Hardman

Labour’s weak welfare attack leaves Tories to chant tribal slogans in Commons

Today’s Work and Pensions Questions was taken almost exclusively by Esther McVey – to the extent that when Steve Webb finally got the chance to answer a question, he joked that he had started to ‘feel unemployed’ while waiting for his big moment. Even Iain Duncan Smith only got one good stint at the despatch box, when Rachel Reeves asked him about the progress of Universal Credit. But the rest of the session was McVey Question Time. Tory MPs are naturally in a tribal mood at the moment, and so all most of them want to talk about was the jobs fairs they’re all holding in their constituencies. ‘I organised

Thursday

Rory Sutherland

Why everywhere should be more like Essex

Apart from the Wye Valley, where I grew up, there are only two places in Britain I’d consider living: Kent and Essex. Since Kent grabbed the ‘Garden of England’ moniker, it’s generally considered the posher of the two, but in reality the two counties are mirror images of each other: in the words of one travel writer, the Medway towns are ‘where you take your northern friends when they claim that southerners are soft’. In both places it is possible to drive through an idyllic medieval village and two miles later find yourself at a KFC drive-thru which is open until two in the morning (I like both). I now

Monday

Isabel Hardman

We get few answers from the Work and Pensions grudge match

Departmental questions have, by this stage of the parliament, all developed their own characters. There is the colourful combat of Treasury questions, often involving one Tory minister deploying a lengthy analogy involving handing over the keys to a car or arson to describe Ed Balls. Then there’s Michael Gove and Tristram Hunt’s lesson in rhetoric at Education questions. And then there’s the hour-long grudge match that enlightens no-one at Work and Pensions questions. Today’s session was a typical example. Labour had plenty to attack on, from the implementation of universal credit to the cost of the employment and support allowance. And the party did attack. But the questions and the

Thursday

Ian Cowie

Investment special: How to come out top in the pensions revolution

Three years after The Spectator called on the Chancellor to ‘stop treating pensioners like babies’, his Budget this year gave everyone greater choice about how we enjoy our life savings. While more column inches have been expended on the outside chance that some pensioners might blow the lot on a Lamborghini, less has been said about our exciting freedom to retain control of the biggest fund most of us will ever acquire and to remain active investors after we retire. Contrary to what some commentators seem to imagine, George Osborne did not abolish the legal compulsion to spend most of our pension savings on an annuity or guaranteed income for

Monday

Isabel Hardman

Esther McVey shows that the Tories are aggressively on message

Work and Pensions Questions in the Commons has long been a battle between the two main parties for the moral high ground, but today Esther McVey, who appeared even more energetic than usual, made that battle just a little bloodier. She scolded Sheila Gilmore for not smiling when she talked about more people in employment and then listed ‘all the good news that is happening’. Then she told Stephen Hepburn that he hadn’t read the figures on the labour market, joking that ‘the honourable gentleman spoke with gusto but that was all he spoke with’. She was quite keen on the word ‘gusto’, actually, praising Nigel Adams for asking a

Thursday

Martin Vander Weyer

Why I’ll join the silver stampede to cash in a pension

At the beginning of the last decade, a young man who claimed to be my ‘premier banker’ paid me a visit. He was accompanied by his boss, evidently there to assess the junior’s performance. Once upon a time — at least in popular imagination — bank managers were kindly, cautious, long-term advisers, but by the turn of the new century they had become shameless product-pushers with targets to fill, and it was obvious from the body language of both visitors that this poor chap had to sell me something by the end of the call or his job was on the line. So I took his ‘advice’, signed for a

Thursday

Charles Moore

The Spectator’s Notes | 16 May 2013

The BBC loves nothing better than a narrative in which Tory anti-European eccentrics split their party, and a bewildered public votes Labour. It is certainly the case that some of the Tory sceptics are half-crazed by dislike of David Cameron. But the reason the subject keeps coming up is because it matters, and it remains unresolved. The Tory rebels understand this in straightforward electoral terms: the rise of Ukip threatens their seats, so they must do something about it. What is maddening is not so much Mr Cameron’s actual policy on Europe, but his patent longing to avoid the subject. His refusal to ‘bang on’ about Europe has brought about