Final salary pensions on the way out?

Although much has been going on recently, there has been little I wanted to comment on; until now.  Whilst not a particularly interesting subject, it is one of great significance: pensions.

 

The Financial Times reports today that an incoming Conservative Government will phase out public sector final salary pension schemes.  This is great news.  Whilst the private sector have been ditching them as fast as Gordon Brown ditched his Golden Rules, the public sector has been sailing on as if nothing is wrong.

 

In short, the final salary schemes are an unsustainable burden on the British economy and hold future generations hostage to the greed of the present.  The Treasury estimates the liability to the tax payer to be at £650bn.  It cannot be right for our children and grandchildren to be forced to meet this liability in the future.  A system more emblematic of modern profligacy, greed and conceit is hard to find.