29th March 2006, 06:38 PM
I think the changing population demographic will take care of the state pension fairly soon. The government really hasn't come up with anything to resolve the problem except the idea of forcing people to save for retirement, so the state doesn't have to. That in itself should indicate what they believe will happen. I hope I am wrong.
I believe that the NI I am currently paying goes to the current crop of pensioners. The idea that I am paying in to a fund that I will get back when I retire is I believe a myth. The money will be long spent. Evidence of this is the fact that the the demographic bulge AKA the baby boom generation is contibuting/causing the looming pension crisis. There simply aren't enough of the younger generations to pay an aging populations pension payouts. If all the baby boomers NI that they had paid in, was sitting in a fund somewhere there would be no problem. But it isn't.
I believe that the NI I am currently paying goes to the current crop of pensioners. The idea that I am paying in to a fund that I will get back when I retire is I believe a myth. The money will be long spent. Evidence of this is the fact that the the demographic bulge AKA the baby boom generation is contibuting/causing the looming pension crisis. There simply aren't enough of the younger generations to pay an aging populations pension payouts. If all the baby boomers NI that they had paid in, was sitting in a fund somewhere there would be no problem. But it isn't.