The pensions industry has welcomed the appointment of Torsten Bell as Pensions Minister, with hopes that Bell’s background of campaigning for high retirement living standards could “revive the necessary discussions about increasing auto-enrolment (AE) pension contributions”.

The Labour MP for Swansea West was appointed as Pension Minister yesterday, 14 January, after former Pensions Minister, Emma Reynolds, was named Economic Secretary to the Treasury, following the resignation of Tulip Siddiq.

Society of Pension Professionals president, Sophia Singleton, highlighted that this appointment had come at “a particularly important time” for pensions policy with various consultations in train, Dashboards, Value for Money (VfM), other projects mid-progress, and a “much-needed” pensions adequacy review having appeared to have “stalled” under the previous Minister.

Singleton emphasised the importance of driving forward these initiatives and implementing evidence-based pensions policies.

Meanwhile, Pension Bee UK chief business officer, Lisa Picardo, expressed optimism about Bell’s appointment, citing that his background of campaigning for high retirement living standards could “revive the necessary discussions about increasing AE pension contributions”.

“We welcome the new Pensions Minister to his new role. With his extensive experience in public policy, we’re keen to see his innovative approaches that prioritise savers and bring much-needed progress to the pensions industry,” Picado said.

In addition to this, Picado said PensionBee was hoping to see a “long-overdue resolution” to transfer delays caused by the 2021 transfer regulations.

She suggested that an increasing number of reports highlighted the “urgent” need to provide consumers with greater clarity and confidence in their pension transfers, including introducing a 10-day pension switch guarantee.

Similarly, Pensions Management Institute CEO, Gareth Tancred, pointed to Bell’s “valuable” experience from his time as CEO of the Resolution Foundation as an asset to the role.

Tancred suggested that the delay to the second part of the Pensions Review provided an opportunity to consider how adequacy and AE can be evolved and modernised to address pension adequacy, citing the proposed Lifetime Savings Initiative to achieve this.

Furthermore, Aegon head of pensions, Kate Smith, said: "Although this is a change in ministerial leadership, we expect little change in the strategic policy direction.

"This is also an opportunity to carry out a review of all the policy initiatives in flow, considering the sequencing which works best to deliver the government’s objectives without causing customer confusion or market chaos."

However, Quilter head of retirement policy, Jon Greer, said Bell’s appointment as a joint Parliamentary Secretary in HM Treasury and Parliamentary Under Secretary of State in the Department for Work and Pensions (DWP) showed Labour’s intention to place pensions policy at the “heart” of its economic agenda.

Greer noted that Bell’s background as an economist and experience at the Resolution Foundation provides a “solid background” for the pensions brief and will enable him to grasp the complexities of a sector so critical to the financial wellbeing of millions.

“While Bell has previously advocated for radical pension tax reforms – such as moving to flat-rate pension tax relief and capping the tax-free lump sum at £40,000 – these ideas often fail to account for the practical realities facing savers who have relied on the stability of the existing system,” he said.

“That said, his dual appointment, like Reynolds' role, across the Treasury and the DWP reflects the broader implications pensions have for the economy and the public finances.

“Labour’s commitment to the state pension triple lock, despite fiscal constraints, will test his ability to deliver on manifesto promises while ensuring long-term sustainability.”

However, he pointed out that Bell’s appointment underscored a perennial issue, the revolving door of pensions ministers.

He said this role that is “pivotal” to the retirement prospects of millions has seen a succession of short-lived appointees, each struggling to leave a meaningful legacy.

“The pensions industry is eager for a minister who can combine vision with execution and remain in post long enough to deliver meaningful reform,” Greer added.

In addition, NatWest Cushon director of policy & research, Steve Watson, said that Bell had a lot on his plate, especially the Pensions Investment Review.

“Other policy initiatives that are potential enablers, like the VfM Framework, also need to be delivered," he said.

"How the new Pensions Minister begins to prioritise and tackle all of these crucial challenges and initiatives will be vital to how the sector evolves and how quickly.

"We look forward to working with Bell to help deliver on the pensions agenda which has the potential to transform pensions.”

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