Wednesday, 8 January 2014

On the Today programme discussing retirement

This morning, I was on the Today programme to discuss my new paper on how to make older people work longer (which I wrote about over at ConservativeHome). It’s all about incentives. Radical measures are necessary, including raising the state pension age faster, reduce employment protection among older people, and in the long run move towards a privatised system with compelled savings (similar to Australia’s pension system).

In the programme, I was asked how likely reform is given that old people vote. It’s true that the representative democratic process is a problem here. Rent seeking soon-to-be pensioners try to stifle any attempts to fundamentally reform the system. But keeping the status quo will just lump over the problem on my generation, who will be taxed up to our ears in order to pay for the increasing state pension expenditures under the current system, with declining economic growth as a result. Doing nothing is not an option – we clearly need courageous politicians to take on the challenge rather than worrying about the prospects of getting re-elected.

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