The phrase ‘pensions timebomb’ is as familiar to us now as the price of milk. But with familiarity comes complacency. A 2012 report by the IMF estimated the cost to be £750bn by 2050, representing a rise in UK public sector debt from around 75% of GDP to 135%.
Democratic governments on harnessed to the yoke of election cycles are notoriously short-termist in their policy. What caused this ticking timebomb? And is enough being done to defuse it?
What builds a bomb
The narrative of an ageing population has been well established for years, and it is well understood that this is what lies behind the looming pensions crisis. But there is more to it than just the narrowing worker to pensioner ratio. Continue reading