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THE YOUNG HELD TO RANSOM – A PUBLIC CHOICE ANALYSIS OF THE UK STATE PENSION SYSTEM
Author(s) -
Booth Philip
Publication year - 2008
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2008.00793.x
Subject(s) - ransom , pension , accrual , state (computer science) , private pension , pension system , business , economics , actuarial science , public economics , accounting , finance , political science , law , earnings , algorithm , computer science
As populations age, it will become increasingly difficult to reform state pension systems. Reform will not be impossible, but the process of ‘buying off’ interest groups will be expensive. State pension provision must use the contributory principle combined with an accruals system – though private pension provision would be better still. There are serious flaws in the so‐called ‘citizens pension’ much promoted by interest groups in the UK.