The UK Pensions Crisis
The Truth About the Bankruptcy of the Welfare State is Beginning to Sink In
In the UK the Turner report on pensions is due out and will reveal a GBP 57bn shortfall in the amount that is deemed necessary for adequate provision in retirement (see here).
"The commission has identified the "unpalatable choices" of higher taxes, a big increase in private savings or later retirement needed to plug the gap. "
Higher taxes have been ruled out, at least for the time being. So the government seems to be pushing the idea of raising retirement ages. Whichever way you look at it, the benefits promised simply won't be there.
The UK is far from having the biggest problems over pensions. The major European states have a massive problem, as does the USA. I guess it's encouraging that this issue is being discussed now, rather than in 10 years time when the bills really start to come in. However, the message for the private citizen is pretty clear. You can't rely on the government and you need to start making provision for your retirement right now.
In the UK the Turner report on pensions is due out and will reveal a GBP 57bn shortfall in the amount that is deemed necessary for adequate provision in retirement (see here).
"The commission has identified the "unpalatable choices" of higher taxes, a big increase in private savings or later retirement needed to plug the gap. "
Higher taxes have been ruled out, at least for the time being. So the government seems to be pushing the idea of raising retirement ages. Whichever way you look at it, the benefits promised simply won't be there.
The UK is far from having the biggest problems over pensions. The major European states have a massive problem, as does the USA. I guess it's encouraging that this issue is being discussed now, rather than in 10 years time when the bills really start to come in. However, the message for the private citizen is pretty clear. You can't rely on the government and you need to start making provision for your retirement right now.
posted by Kevin Francis at
7:36 pm
