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Recently, many issues, problems and faults have cropped up with pensions. Governments worldwide are having further difficulties supporting the old, who are living increasingly longer. This is having a serious effect on the economy, and putting serious strain on the younger generation, who will have to fund these pensions via high taxation. Yet, our generation (due to the crisis) will not receive a pension. By the time we reach retirement age, the pension will have been abolished long before. I will investigate this crisis to assess the situation to its fullest extent. Many years ago, when the Liberal’s set up the pension in 1909, many perceived it to be an excellent idea. It meant contributing a very small amount from your salary to the government. In years to come, you would be guaranteed a pension fund. Working class people no longer had to worry about reaching old age; they could retire in comfort, with the government providing just the minimum income to get them by on. Most were very content with these payments. However, there was scepticism, some thought people were ‘sponging’ off the state, taking advantage of the system. Nevertheless, it proved to be a great success. A mixture of taxation and working life contributions would fund the pension, for many years to come. The pension worked extremely well, simply because our population was having many more children. This was due to a variety of reasons. Some being early marriage, some places still weren’t accustom to birth control amongst other reasons. All these factors contributed to the pension working well. Essentially, there were few old people and many young people.
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