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Latest NewsPay & benefitsPensions

Think-tank challenges pensions assumptions

by Personnel Today 26 Sep 2005
by Personnel Today 26 Sep 2005

Business-led think-tank Tomorrow’s Company will submit a report to the Pensions Commission this week that challenges conventional assumptions about the need for tax increases to pay for state pensions.

It says the ‘old age dependency ratio’ – the number of people aged over 65 to those under 16 – is being given undue significance, reported the Financial Times.

It says polcymakers should, instead, consider the ratio between the number of people working and those not working – the’total economic support’ ratio.  The old age dependency ratio is expected to rise by 42% by 2041, whereas the total economic support ration will only rise by about 1%.

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Based on this measure, better pensions could be paid without the need for significant tax rises, the think tank said.

It also described attempts to encourage savings to cover the pension shortfall as ‘misguided’ because, it said, many non-savers are too poor to start saving.

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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