We need to wean people off the state pension. It’s a giant Ponzi scheme that sooner or later will become bankrupt. But we cannot simply scrap it. Too many people have based their future plans on its existence, and it is too late for them to make up for its removal.
In a new Think Piece I have drafted for the ASI, I propose phasing it out in such a way that those over 60 get a full pension, anybody under 20 gets no pension, and the rest of us see our pensions tapered away at a rate relative to the amount of time we have to make alternative arrangements. Mechanisms would be put in place to ensure that the poorest were not left without any support, and that nobody was blindsided by a sudden market collapse. But basically the onus would be on each of us to prepare for our own future.
This is an idea I have been turning over in my head for some time. It seems reasonable to me, and I’ve tried to address the objections that I envisage. But it’s far from a detailed plan, and I would welcome comments from others who may be able to see problems, improvements or opportunities.
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