A recent article published by the BBC and written by Paul Johnson, the director of the Institute of Fiscal Studies says it all.
The issue is not being given enough exposure. I believe because those in power e.g. in governments and controlling the media (and this is as close as I come to a rant!) don’t have the hunger or desire to share it or push it to the forefront.
What it’s essentially saying (quite rightly so in my my opinion!) is when is the government (and for that matter THE Governments -worldwide) are going to tell people that the pension promise is broken!
We’ve heard noises that we need to be taking personal action but for many lethargy and tightened personal economic circumstances mean that nothing has happened.
Time to break promises to pensioners?
A summary of some of the rhetoric is as follows;
That might seem like an odd question, but when things go well for one group of people it can often be at the expense of another group. In part, at least, that is what has happened for the so-called baby boom generation – those born between the mid-1940s and mid-1960s.
The fact that they have much improved life expectancy, and much higher levels of income and wealth than any generation before them is a fantastic achievement. Those reaching retirement now are better off than any other age group. This is a historic first.
The worry is that the generations coming up behind them may end up rather less well off.
Earnings are stagnating. Home ownership rates have collapsed for younger generations over the past 20 years. And the generous occupational pensions enjoyed by many baby boomers are simply unavailable to younger people unless they are lucky enough to work in the public sector.
At age 30, those born in the early 1980s have only half the wealth of those born a decade earlier at the same age.
Part of the problem is that the older generation has been lucky at the expense of the younger generation. They have enjoyed enormous increases in the value of their homes, and a remarkable number have been able to buy second homes while younger people can’t afford to buy.