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Friday, October 10, 2014

The State Pension Ponzi Scheme

At last someone has spotted that the state pension is nothing more than a glorified Ponzi Scheme; wherein monies paid in by taxpayers are syphoned off for other purposes, and that pensions can only be paid if more people pay in ever increasing contributions year on year.

The Centre for Policy Studies has concluded that younger generations will receive a "derisory" state pension in retirement, because the cash reserves that fund payouts to the elderly will run dry next year.

It seems that there is a "serious flaw" in the national accounts that within 12 months will leave the Government short of money to pay pensioners.

Michael Johnson, an academic at the think tank, claimed in the Telegraph that senior Westminster sources had privately admitted that state pension funding was in a perilous state, having viewed his research.

Millions of taxpayers under the age of 45 faced steep tax increases and would have to wait longer to collect a state retirement income, he claimed, while the under-35s should prepare for the state pension to be scrapped.
"It doesn't matter which government is elected next year, the state pension age will have to go up much faster and sooner than anyone expects to cover the funding deficit.

For Generation Y, aged between 25 and 34, the message from the Government ought to be that the state pension is not viable full stop. But, of course, no politician can say this publicly."

Mr Johnson said the amount of money in the National Insurance Fund was rapidly running out, as too little was flowing in.

As noted, the state pension scheme is nothing more than a Ponzi Scheme!

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