Relative Reality

The theory goes that generally collective thinking produces the correct results,  however the current forced fiasco with the pension reform seems to directly buck this idea.

The theory behind the need for reform is simple, the country is broke, people are living longer and because of this people will be claiming pensions for longer – which ultimately costs more.  The facts have changed and we must adapt, if something costs more you have to pay more.

Of course it seems a little unfair that people who signed up for a job thinking they would get a lovely gold plated pension, find when reality sets in they have to have something more affordable.  But unfortunately for them there is no other option.  Unless they think private sector taxpayers subsidising a pension they could only dream of while they struggle is fair?

And then there is the argument about raising the retirement age.  Raising the retirement age by a few years still leaves a huge retirement time because as I mentioned before, people are living a lot longer – it’s relative.

Yesterday the Government made a more than a fair concession which was refused by the Unions.  This is not a negotiation, this is the Unions refusing to cooperate unless they get exactly what they want.

There is one option that seems not to have been considered.  We could keep the pension scheme and retirement age the same, but it will only be paid up to the age people generally lived to when it was originally devised.  Meaning those who are lucky enough to live past that age are not entitled to any more pension money because they have not paid for it.  This makes sense, it’s fair and is giving people what they paid for – a pension up to a certain age.  But some how I think the Unions would not like this taste of reality either.

The Government must hold its ground.