Michael Johnson: Gen Y to foot £6trn bill for unfunded pensions

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The government must rein in pension promises, or find the funds to back them as the state's unfunded liabilities approach £6trn, argues the Centre for Policy Studies (CPS).

CPS fellow Michael Johnson argued the racking up of unfunded promises was an "intergenerational injustice" caused by politicians fawning over older voters. Looking at the Treasury's Whole of Government Accounts, he said the gap between the nation's assets and liabilities had grown 51% in the five years to March 2014 to £1.85trn. Once the future cost of the state pension is included the deficit is close to £6trn, or £221,000 for every household. Johnson said that Generation Y - those born between 1980 and 2000 - would foot the bill for the benefits that would be enjoyed by the baby ...

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