In a number of countries around the world there has been a longstanding tradition from the citizens that ‘the government will take care’. A classic example is the focus on living in retirement. The government is being told that it must always increase the pensions that retirees receive so that they can live to the standard that they have become accustomed.
Can’t people see the population demographics? At present the ratio of taxpayers to retirees is greater than one, so the tax from more than one person will pay for the retirement pension of one retiree. With the drop in First World birth rates, within 10 years the ratio will go the other way: each taxpayer’s contribution will have to provide for the retirement pensions of several retirees.
Wake up retirees – the government cannot create money out of thin air. Do you really want to become a millstone around the lives of your offspring? Just because you have paid taxes all your life, you can’t sit back and expect others to foot the bill for everything. The harsh reality is that the amount of money available for pensions is rapidly reducing, while the number of people wanting to live off that money is rapidly increasing. I know, and I am doing my best to get my own nest egg sorted before I need it. I suggest you do as well. Government handouts are very much a thing of the past.
People must take responsibility for their own future. By abdicating responsibility to others to provide the solution, they can then have no complaint when others do not provide exactly the right solution to the required value.
Tags: aging demographics, dropping birth rate, government handout, nest egg, pension, retirement, taxpayer funded
October 6, 2008 at 8:38 pm |
I’ve been reading along for a while now. I just wanted to drop you a comment to say keep up the good work.
September 9, 2010 at 1:37 pm |
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