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25 January 2023

We can’t ignore the pensions time bomb

Younger workers could end up with higher taxes and poorer pensions while subsidising comfortable retirees.

By John Oxley

Protests in France have shown the danger of governments tackling pension provision head on, but ignoring the issue is just as risky. It’s a looming crisis with few easy answers.

Almost every Western nation faces the same problem. State pensions have been paid out of current tax incomes, with today’s workers funding the living of today’s retirees. But this bargain will break down as the demographic ratios between them change.

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