Older Workers Are Not Bearing Their Share of Pensions Burden
According to the Intergenerational Foundation charity, the UK’s elderly are not sharing in the burden of pensions in the country. The thinktank, which focuses on the topics dividing generations, said that baby boomers focus their efforts on winning public policy that favours their generation compared to others.
The charity found “short-term pressures” that “disadvantage the young and favour the older generations” tempt government lawmakers.
One example it gave was the pensioner bond of UK Chancellor George Osborne’s higher interest for state-sponsored savings bonds. The baby boomers who had these bonds had a higher payout at 4% compared to the National Savings bonds which only achieve a 2.2% interest per year.
Current calculations also show the young’s burden for pensions in 30-40 years. Pension liabilities and public sector pensions have paid the price for pensioners without the elderly bearing any trouble for the issues.
The charity organisation said the government’s expectation that the UK will have a fast-growing income is the motivation that continues its overestimation of the UK’s capability to pay for pensioners. It said if the growth they seek fails to materialise, it will be the younger generations that will pay the price in their elderly years.