Should We Panic Over Pensions?

Summary


People may well argue the government has a responsibility to protect its citizens against poverty and insecurity in retirement, but the statistical reality found in the world of pensions is making this ideal harder and harder to achieve.

The basic state pension works on a pay-as-you-go basis. In other words, the taxpayers of today are funding today's state pensions.

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Extract


Should We Panic Over Pensions?

However, there is one problem - in 1901 there were ten working- age people to every one pensioner. The current ratio is now four to one and it is estimated that this will worsen to two to one by 2050.

So if nothing changes,...

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