Published on 30 October 2015
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The UK needs to act now to stop pensions becoming an unsustainable drain on financial resources, Researcher William Mosseri-Marlio argued in an article for Citywire. The ageing population and triple lock scheme means the financial burden will only increase over time. He argues that following the Australian system, where state pensions are tied to a proportion of wages, would be a sustainable solution:
“Implementing such a system in the UK would be a boon to the public finances. Returning the state pension to the proportion of wages in 2010 would save £20.9 billion over the next five years.”
“State pension reform is never easy, and this is especially so for the government. The triple lock was a manifesto commitment, and older people vote in numbers and lean towards the Conservatives. However, future governments will not be able to maintain the triple lock and keep the public finances on a sustainable path.”
“For a chancellor who has stressed the importance of prudent economic stewardship, the triple lock is a considerable risk to the Osborne legacy.”
Click here to read the entire article.