Admittedly, I’m mostly posting this for the opportunity to say “wee bairns” — which Walter Russell Mead beat me to, over on Twitter.
But I thought it interesting to put a bit more of a face on “austerity,” the concept that’s getting such a workout over across the pond:
Pension Crisis in Scotland?
U.S. states aren’t the only places facing pension crises at the moment: Underfunded and unsustainable pensions are wreaking havoc in Europe too. The Scotsman, in particular, is up in arms over new rules tying retirement to life expectancy; the paper describes the future under the rule changes as “a grim picture of aged toil.”
The gradual ratcheting up of life expectancy means that future retirees in the UK may be forced to continue working well into their seventies. And within the next decade, retirement age will rise from 65 today to 67. These changes will become more drastic as time goes on. Today’s toddlers may work until they turn 77, and their children are projected to work until they are 85.
The Scotsman (and others) shouldn’t forget the rather shiny silver lining to this supposedly ominous forecast: People may be forced to work longer, but that’s only because they are living longer too, and the new pension plan guarantees 20 years of coverage. Today’s youth may have to work until they are 77, but they can also expect to reach the ripe old age of 97 on average…
I’m with Mr. Mead. As austerity measures go, this one makes perfect sense. We should be be thinking more along those lines in this country.
Yeah, 77 is well up there. But it’s hardly the “grim picture” that the Scotsman would have it.
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I think the “greatest generation” and maybe the baby boomers are going to be the only generations ever to be retired longer than they work. It’s not natural. One of my grandfathers retired in his early 50’s and lived to be 95. The other one has been retired for 37 years so far.
The laptop warriors can probably work ’til 77, but people who are on their feet, or have to travel a lot, or so on, will not be able to carry on.
and what happens to the involuntarily “early retired” folk?