Apr 302017
 

Short answer: NO!

One of the infuriating things I come across is the notion that final salary pension schemes are generous; it seems that a generation of Tory propaganda has persuaded people that such schemes were wildly over-generous and completely affordable. Of course many of those doing the persuading are taking advantage of those “generous” pension schemes.

What it is easy to forget is that many of those final salary pension schemes collapsed because successive governments turned a blind eye to the private sector looting pension scheme surpluses and panicking when the surpluses turned into deficits. In other words when pensions were profitable they were affordable, but whenever a company suddenly had to contribute more than it expected they were suddenly too expensive.

Now don’t get me wrong – with increasing life expectancy there are problems with funding pension schemes, and we can decide that they are too expensive, or not. But if a pension scheme was perfectly reasonable in the 1970s, it doesn’t suddenly become overly generous in the 21st century.

As it is, we have “decided” that rather than share wealth out amongst the working-class, it should be kept in the hands of the already wealthy.

Of course we could always decide to revisit that decision and spend more time thinking about it.

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