The state pension fund has never been about taking money away for future use. The money taken away through taxes has always been to fund current pensioners. The money they took from you or anyone 20, 30, 40 years ago was to fund the retirees of then, not for you. The amount you get is based off your NI to see how much you’re entitled to, but the money comes from today’s taxes, not from some stored pot anyone paid into.
But that was the idea.
Pot of money, stored, invested.
But they couldn’t resist spending it.
Now they whine.
Look it up.
It hasn’t worked that way, so my original point stands. The state pension is something the current workers pay for and will be a contribution to lack of growth in our stagnant economy. It’s a challenge for our governments that they haven’t faced and this belief about pension pots paid into over time funding the state pension makes it harder for the government to find solutions because no-one will be happy.
The country faces hard decisions and challenges, which will likely take years to address, but we all want immediate solutions and this causes rapid decline in trust in the PM. As we have seen over the past decade. I don’t think the next PM will change this, Burnham or otherwise. None have shown much will to address it. Starmer tried somewhat and got stick, so we’re left with pretending there can be no short term harm in trying to rebuild a more affordable economy, where wages can match expenditure. Which will lead to the next PM likely facing the same loss of trust when reality bites.
