This might not resonate to many young people, but if companies are having to fulfill extravagant obligations to retired staff that means less investment in young people. Employers spent £160bn to reducde the deficit in 2015 - that's an awful lot of training, permanent contracts, investment sacrificed. Instead money is going to bone idle people to have incomes that are in some cases equivalent to someone in full time work. But it's not sustainable. Whilst DB schemes are nearing extinction (but probably not in the boardrooms), there's still £2.1trn in liabilities against £1.3trn in assets and the gap looks like it's only going one way.
It's another cog in the intergenerational inequality wheel.
How will this timebomb end? Who will fund the shortfalls? Will there be no option but to cut the pensions?
Private sector defined benefit pensions report a £0.8trn deficit in 2015
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