Pensions Crisis - is it really a problem?

A new Merc, lots of cruses and a large villa in Tuscany presumably.

When generation X'ers have seen their parents experience such as the above they're going to be pretty pissed when similar expectations in their retirement aren't forthcoming, if retirement comes at all.

In other cases people will be fine because they have pensions with guaranteed outcomes, it's just that they're almost certainly unfunded and that has to come from somewhere.

It may be relative but people genrally expect a persistent rise in living standards, who knows what happens if conditions stagnate or back track.

But that's my point. These things won't disappear. If *nobody* can afford them at current prices, won't they just get cheaper?

KotF

"Kenny of the Fells" wrote

If the manufacturer / service provider / seller can't afford to make/provide/sell at lower prices, will they bother??

The government claim that the with an older population there will be less people working, hence less income to support pensions and benefits.

BUT they also tell us there will be more and more people on the road, so need to charge us to get down on congestion, something does not stack up.

In our political spin culture, evert thing has to be debated and challenged.

John

Maybe, but if there is any significant deflation you have to ask what would happen to Mercedes employees, their pension fund and the funds that have invested in DaimlerChrysler stock. I think the answer is to look at General Motors ;)

Az.

Eastern Europe is a good place to look - where teachers and doctors get the equivalent of $100/month pension due to inflation post-communism.