Michael Johnson writes for The Yorkshire Post on the rocketing cost of UK pensions.
“THE UK’s public finances could be slowly crushed by the rocketing costs of preserving our burgeoning pensioner population over the next few decades.
In parallel, our domestic supplies of capital are likely to be depleted, exacerbated by a shrinking savings pool. Japan’s once legendarily high savings rate, for example, is expected to turn negative this year, as its pensioner population spends their savings. Demographically, the UK is perhaps 20 to 30 years behind (subject to immigration policy).
Given that other developed nations are likely to experience a similar phenomenon, albeit over different timeframes,a battle for capital is coming to the developed world. The cost of capital is likely to rise.”
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Date Added: Tuesday 3rd July 2012