Pension shortfall

[rov1200]

If half the people over 40 have made no provision for a pension which in future will be paid from 33% of those in work how will this be funded? I can't imagine there will be much work for 80 year olds.

http://news.bbc.co.uk/1/hi/business/8068728.st m

[VHG]

This problem of an ever increasing older population, with a declining birth rate, is a major problem for most western countries.

This is why immigration has been actively encouraged in many Western countries, as immigrants tend to have more children than the indiginous population.

How to fund this aging population is a difficult one.

The state pension will probably be means tested, so if you already have a pension or some savings you dont get the state one. That well save some money.

People who own their own homes will be expected to sell them to pay for services if they go into a home (which already happens).

People will probably also work longer, with a fixed retirement at 65 being a thing of the past.

Older people may also be expected to pay for some of their medical treatment if they have savings.

But overall it is going to be a MAJOR problem in the "west" and we may find it difficult to continue to support an ever aging population.

[jno]

the original idea behind pensions (very roughly) was that you retired at 65 on a pension paid for from tax on your four children, and died at 70. Now people retire at 60 and live to 80, with only one or two children (or none) to pay for it. The maths doesn't add up any more. I think VHG has listed the options accurately, but I wouldn't swear any of them will work. I'm not bothered by under-30s who don't start pension planning (I didn't), but anyone over that age who can afford to save and doesn't is heading for trouble.

[rov1200]

"This is why immigration has been actively encouraged in many Western countries, as immigrants tend to have more children than the indiginous population"

If this were the case many more immigrants would be welcome. Unfortunately hardly any show allegience to this country so you may find the money going elsewhere.

As many older recipients of a pension have not contributed to the government one this will also add to the social security budget which has ballooned in recent years. The Tories believe in low taxation so if they're in power cutbacks in other benefits are most likely.

[VHG]

>If this were the case many more immigrants would be >welcome. Unfortunately hardly any show allegience to >this country so you may find the money going elsewhere.

I did not say I SUPPORTED it, I was just stating it as a fact.

I believe the mass uncontrolled immigration we have had in the last 10 or 20 years has been a disaster for this country and will lead to big problems in the future (in fact we already have big problems now).

[tamborine]

I was amazed to have an OAP as air-hostess on plane last week. She was well over 60. Am sure she couldn't jump down a chute in an emergency.

[jno]

you're being very ageist, tamborine. How do you know who can jump down a chute and who can't? And how do you know she's a pensioner?

[buildersmate]

Well that made for a good laugh - even reading it at 04.30 in the morning. And your final line about non-partisan really takes the biscuit.
Suggest to your social worker colleagues that they smoke a few less fags, drink a little less booze and put the money instead into a pension.

[Gromit]

What is needed is a huge influx of immigrants each having 10 children and then they can grow up and work and pay taxes and fund me in my dotage.

[jno]

as you know, Gromit, this country is so overcrowded already that decent people are having to stand on each other's heads to make room. Probably the best solution would be that these foreigners and their kids all pay into a fund for your retirement, but without leaving their own country.

[Gromit]

jno

We could let in a few doctors. And nurses. And IT people. And possibly some care home workers. And hotel workers. waiters and waitresses. But definately no one else.

[jno]

and don't forget teachers. And Madonna.

[ludwig]

What's happened is that everyone's realised they're not going to get a penny from the state if they've got any kind of private pension or savings so they're all saying 'Oh well, I might as well spend everything now then', thus exacer..exacc..adding to the problem.

The solution as Gromit and jno say is to bring in huge quantities of immigrants whose tax will pay for my pension.
I'm not sure who's going to pay for their pensions when they all retire, but don't care as I'll be dead by then.

[rov1200]

I've heard one of the first things Cameron will do when he gets in will be to abolish the Winter fuel bonus. Then the scrapping of the free bus pass. The tories have already abolished the state pension linked to earnings (considerably reducing the purchasing power) so the pensioners will be severely disadvantaged from any future cuts.

[jno]

well, we will all be part of the European superstate by then, ludwig, so the French can pay.

[buildersmate]

Your political allegiances are showing through, Rov.
The Tories may well have broken the link between earnings and the State Pension but that mob herded by Tony and more recently Gordon haven't exactly rushed to relink it. They've had 12 years to do it, damn it.
The reason is simple - it's not affordable for UK plc. At least the Tories realised it and took action.
When it comes to pensions, I'm looking after number one, thank you. No-one else is going to.

[rov1200]

Buildersmate just because I point out the failings of the Tory party does not mean I vote Labour or Liberal. In fact according to the state of the country at election time and the major problems may sway me to one of the minor parties. Immigration has not been successfuly tackled by the major parties and in response I may even vote for BNP next time.