"Unfortunately over the past year, short-term political considerations, exacerbated by the EU referendum, have inhibited good policy-making."
She was appointed following last year’s general election and oversaw the cap on pension exit fees and the planning of the secondary annuity market.
Richard Harrington has since been confirmed as Under Secretary of State at DWP.
Altmann used her resignation letter to push for further pension policy reforms, including a review of DB pension schemes and a reform of women’s state pension age.
She added that "short-term political considerations, exacerbated by the EU referendum, have inhibited good policy-making".
In her letter, Altmann said: "I am honoured and grateful to have had the opportunity to serve in Government and look forward to continuing to advise on pensions, finance and later life policies from the House of Lords benches.
"As a Minister, I have tried to drive positive long-term changes on pensions from within Government and ameliorate some of the past mistakes which I have cautioned against. Unfortunately over the past year, short-term political considerations, exacerbated by the EU referendum, have inhibited good policy-making. As the country heads into uncharted waters, I would urge you and your new team to enable my successor to address some of the major policy reforms that are needed to improve pensions for the future.
"It is vital that we continue to roll-out the successful auto-enrolment programme to ensure all employers offer pensions to their staff. Regardless of the economic challenges, everyone will need to have some money set aside for later life and pensions are the best way to do so. We must, too, address the crisis in social care funding and help people provide for potential care costs as well. In order to help fund this, we should look to develop a ‘one nation’ lifetime pension."
Altmann's future reform wishes include:
A ‘one-nation’ pension – long overdue reform of pension tax relief: Our present ineffective and complex incentive structure for pension saving costs over £40billion a year. It favours the highest earners disproportionately, while leaving lower earners seriously disadvantaged. We need a radical overhaul of incentives, which can offer more generous help than basic rate tax relief, but as a straightforward Government pension contribution for all, and would end the discrimination against Britain’s lowest earners who are forced to pay at least 20 per cent more for their pension than higher paid workers. This ‘one nation’ pension would see withdrawals taxed in later life, so that people have a behavioural incentive not to spend the money too soon.
A major review of Defined Benefit pension scheme funding and affordability: We must urgently assess the future of our Defined Benefit pension schemes. Given the risks of diverting corporate resources to one favoured group of workers, the need to ensure adequate resources for younger generations’ pensions, the time is right to properly consider the issues facing employers trying to support Defined Benefit pension schemes and potential use of pension assets to boost economic growth.
Fair treatment for women and better communication on State Pensions: On the issue of women’s state pension age, whilst I respect the democratic decision taken in 2011 by our Parliament, I am not convinced the Government adequately addressed the hardship facing women who have had their state pension age increased at relatively short notice. They were not adequately informed. I also believe we must devote resource to widely communicating and publicising the coming changes to state pension age for both men and women.
