Altmann outlines her three-point pension reform wish list

Reform of state and public sector pensions and an end to contracting out are top of Ros Altmann's list of issues to lobby the new government on.

Pensions expert Ros Altmann thinks there are three key issues pensions campaigners need to focus on within the opening months of the new government administration.

‘My three priorities would be state pension reform, public sector pension reform and ending contracting out,’ says Altmann.

State pension reform

The coalition has already promised an independent body to review public sector pensions, and Altmann believes Department for Work and Pensions head Iain Duncan Smith could help end means testing.

‘In reforming means testing, they could at least start by removing it for older people for whom it is least suitable,’ says Altmann.

Public sector pension reform

The Tory-led coalition has already announced plans to link the basic state pension to the higher of earnings, prices or 2.5% – a ‘triple promise’ – but for Altmann that is only the first step.

‘I am glad they have relinked the state pension but the proposal doesn’t say anything about the state second pension. Reforming that would be much, much better,’ she says.

Rachel Vahey, Aegon head of pensions, says the current ‘redistributive’ state second pension does not give people confidence in savings.