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The Future of Public Sector Pensions
Author(s) -
HUTTON JOHN
Publication year - 2012
Publication title -
the political quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.373
H-Index - 37
eISSN - 1467-923X
pISSN - 0032-3179
DOI - 10.1111/j.1467-923x.2012.02285.x
Subject(s) - equity (law) , pension , public sector , life expectancy , coalition government , government (linguistics) , economics , public policy , payment , expectancy theory , public economics , conservative government , public administration , political science , sociology , economic growth , law , finance , economy , management , population , linguistics , philosophy , demography , politics
The dramatic rise in life expectancy and longer retirement has created serious concerns about the long‐term affordability of public sector pensions. Drawing on insights from a recent inquiry into public sector pension reform, commissioned by the Conservative–Liberal Democrat Coalition and led by the author, this article outlines the challenge faced by policy makers and sets out how it should be addressed. It argues that, with 12 million people active in this part of the pensions system, and estimates that the gap between contributions and payments will grow from £3bn to £10bn in the next decade, the government has no choice but to enter the ‘lions’ den’ of pensions’ policy. It contends that any long‐term solution is to be crafted cannot be based solely on economics, but must also answer fundamental questions of ethics and equity.