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Population rise to exacerbate pension crisis – Aon

by admin
November 2, 2009
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The projected rise in the UK’s population is likely to lead to substantial tax rises just to sustain current basic pension levels, says Aon Consulting. The ONS estimates that the UK population will rise from 61m to 71.6m by 2033. Aon calculates that the total state pension bill will rise by 32 per cent and each individual’s contribution will go up by 14 per cent to pay for it. Marcus Hurd, head of corporate solutions at Aon says: “State pensions are like pyramid insurance: you need to keep feeding the bottom to fund those retiring at the top.”

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