Season 1 · Episode 410
Paying for our old age
Faced with rising pension liabilities governments the world over are encouraging us to invest in private pension schemes. Is that good for the economy or not?
Debunking Economics - the podcast · Steve Keen & Phil Dobbie
July 3, 202439m 32s
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Show Notes
In the UK the proportion of the population aged over 65 has grown from 16 percent in 2000 to over 19% today. It’s a similar story throughout the western world as the population ages. That’s seen as an enormous liability for governments who will have to pay out pensions to their old folk. Hence the drive to get people to put money into private schemes. In the UK there’s over £2.2 trillion tied up in pension funds, more than AUD$3.4 trillion in Australia. So, what good is that money doing? It will be paid out sometime, but is it helping the economy in the meantime? Steve says it’ll doing a good job in driving up asset prices, but Phil suggests some of it is being invested in productive causes, like property development and private equity funding. The good and bad of private pensions on this week’s podcasts.
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