by Chauncey Tinker – 28 Aug 2019
The fruit of money trees which are commonly found in the countryside in the UK
The UK government has been considering a plan to raise the retirement age to 75. From the Mirror:
Tory’s plan to raise the state pension age to 75 over the next 16 years
The plan was outlined in a report from a think tank that was founded by Ian Duncan Smith. The plan is not official government policy and the DWP have issued a statement that there is no plan to raise the state pension age to 75. However the report apparently stated that the current state pension age was unaffordable even after it is raised to 68.
As somebody pointed out in the comments below that article, the average life expectancy in the UK is only a little over 75, according to the Office of National Statistics the average life expectancy in 2017 was 79.2 years for males and 82.9 years for females. So on average our state pension would only now be expected to support us for the last 4 – 8 years of our lives, if this plan were implemented. According to the ONS the average life expectancy is currently static as well, so clearly the suggested rise in the pension age is not intended to cope with an increase in life expectancy:
National life tables, UK: 2015 to 2017
Many were surprised by the claim that the pension age would have to rise even further, because they had been told that the high levels of net mass immigration that the UK has been enjoying for many years would pay for their pensions, and they believed what they had been told. For example, “evidence” to that effect was apparently submitted to the House of Lords Economic Affairs Committee of Enquiry back in 2003. From the London School of Economics:
Is Immigration the Answer to the UK’s Pension Crisis?
the UK state pension system is unlikely to remain viable without a steady inflow of young immigrant workers from abroad
The UK and also the rest of Europe are clearly very attractive places for people located outside Europe to work in, so immigration would be one key way of changing the worker-pensioner balance as well helping to attenuate the growth rate in wages that would otherwise be induced by labour shortages.
This article is based on written evidence presented to the House of Lords Economic Affairs Committee of Enquiry into ‘Aspects of the Economics of Ageing’ on 2 February 2003, 11 March 2003 and 4 April 2003
These same people who were surprised by the report perhaps also believed that their pension contributions were being set aside in a protected pension pot. Unfortunately the government did away with this pretence many years ago; government debt is just a giant blob of debt, there is no pension pot.
A government website from the Department of Work and Pensions has this advice:
Get to know your pension The Pensions Regulator, Department for Work and Pensions
[Myth:] The State Pension will be enough
BE CAREFUL! The State Pension is a foundation, but for many people, relying on this alone could mean a fall in income upon retirement. Saving into a workplace pension means people will have more money to continue doing the things that they enjoy when they retire.
The state pension is a foundation is it? Don’t imagine that the government will move the goalposts again at any time in the future, whatever you do.
The next question I fear will inevitably be, who should we blame for the disappearance of our pensions? Inevitably the people who will be blamed are the current government, as people will be forgetting all the previous governments’ mismanagement decisions that brought us to this situation. They will forget that nice little note that the Labour Government left for the Tories when they came to power in 2010:
‘I’m afraid there is no money.’ The letter I will regret for ever
How many pension funds do you know of that are £1.78 trillion in debt? You have been “paying as you earned” into a black hole. The money has been spent. It’s been spent on bailing out the banks, it’s been spent on giving the doctors an unaffordably generous pay rise, it’s been spent by the same doctors on foreign patients who never paid a penny in taxes, it’s been spent on this and it’s been spent on that. It’s been spent on giving previous generations an unaffordable pension so that when it gets around to your turn to retire, there’s no money left. (In truth we passed that milestone a long time ago, it’s just that politicians didn’t want to admit that we had so they kept on borrowing from the future to pay the pensioners of the present).
It’s gone, and with Boris’s magnanimous Keynesian plan to boost the economy with a spending splurge, even more debt is going to be added to the current pile. That’s your pension fund that he’s playing with (the one that doesn’t exist anyway because it’s already been spent) but don’t worry because Boris is all-knowing and can see into the future and absolutely knows that the money (YOUR money, your pension pot, your missing pension pot) will not be wasted in any way whatsoever. It’s even been confirmed by somebody important at the IMF who absolutely knows what he’s talking about that there will be absolutely no problem at all if Boris “turns on the spending taps”. Here’s the article from the Telegraph that absolutely proves it (well it quotes the IMF “expert” at least anyway):
Boris Johnson can ‘turn the spending taps on’ without fear of damage to the public finances – IMF expert
Money does grow on trees after all, what a relief it is to know that.
Just as governments of the past made promises for the future that they had no way of knowing would be kept, so the governments of today are making promises for the future still that they have no way of knowing will be kept. Sorry to be the one to break the news to the naive among you, but politicians lie, it’s what they do for a living.
The great leaders of the EU have devised a cunning plan to solve the looming pensions crisis:
The Solution To Europe’s Pensions Crisis!
From the Bank of England:
How much gold is kept in the Bank of England?
From Migration Watch:
20 Bogus Arguments for Mass Immigration
Women complained when they were given equality of the pension age by the government, because women want equality with men (and anyway they live longer), it’s fairer that way. From the Guardian:
Women’s state pension age rise: an unfair burden or a necessary reform?
It may seem like an inversion of reality has taken place when it is the Guardian asking the question “who will pay?”.
Boris Johnson says he’ll spend, but who will pay?
What do you think? Please leave a comment below.