How can you sit there and say that the scheme is fully funded?
If the public pension pot is £1tn (say), and it's meant to cover some 3m people based on a retirement age of 65 and a likely life expectancy of 10 years, how can that same pension pot, with no extra contributions, the same retirement age AND the same annual income support the same amount of people who have a life expectancy of 15 - 20 years following retirement?
I'm sorry if I've missed something but on simple maths, you can't make the same amount of money stretch further whilst still receiving the same income from it, unless of course you have a money tree.
Even if you assume that not all of the 3m people will survive the extra 5 or 10 years, you would also have to assume others will live 20 or even 30 years, there still would not be enough money in the pot.
I don't see how that is sustainable. Even if you push up the retirement age by a couple of years you still couldn't cover the extra money required, you would still need to raise contributions and reduce payouts to make it stretch further. The only other alternative is to reduce the number of people who the pot benefits!
Gareth, I can assure that in the private sector we have had pay freezes since 2007, most of us at some point (and some still are) expected to take pay cuts (some get the benefit of reduced hours most don't), and most of us haven't seen a bonus since 2006. We also don't get nice final or even average salary pension schemes, and our employer contributions (if we're lucky enough to get one) are generally no more than 5%, more are more like 3%. We have to save and hope and pray that our pots increase in value to pay for our retirement.
Your statement about the financial would be a great comparison if it wasn't patently untrue. Sure the management and the bosses have got mega payrises and bonuses, but the staff on the ground, the ones you see and talk to every day, the ones who didn't gamble our money away, the ones who help you out. Well they are in a worse boat. Most of them haven't seen a pay rise since 2006, won't hope to see one for another 10 years, have given up hope of receiving a bonus, have witnessed their 'bonuses' from the past (i.e. shares) drop so far and so fast that they are virtually worthless and are living under the constant threat of redundancy. Do you really think those people are the fortunate ones?
In all this banker bashing people forget that the real people who suffered werent' the casino hedge funders or even the mangers and bosses, it was the ordinary every day staff who lost their jobs.
As for the suffering F451, I'm sorry but having your pension cut isn't anywhere close to being beaten and murdered in the street by over zealous government militia, and to think that that would happen in this country over a few strikes is rather foolish. It would take the full on decay of our society to even get close to that state. Sure we don't need things to get that bad, but things are very, very, very long way from being that bad, and no small single event will tip that scale.