Government State Pension Is A Ponzi Scheme

[copycat]

If there isn't enough money in the pot to pay for pensions when people retire then its typical that the pension arrangements provided by the Government are now found to be unfunded so that the benefits are paid directly from current workers' contributions and taxes.

 

Smacks of a huge Ponzi scheme. Jeffery Robinson in his book Th eSink describes a Ponzi scheme as a fraudulent investment operation that involves paying abnormally high returns ("profits") to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business, and that its named after a Charles Ponzi.

 

Why can't the same apply to the Govt schemes and any new employee just isn't put into the existing scheme and instead has to do like muyself and most others these days and have to go into a money purchase scheme. Surely there is a case for action against the schemes trustees for not bringing to attention at an earlier date that the schemes were not being properly funded.

[Gladys]

The IOM Govt scheme is funded on a pay as you go basis, just as the UK Govt's scheme is (and, I think, the state pension is too). Everyone seems to recognise that that must change and hence we have all the hooha about increasing contributions from various state employers. Even so, it is not fraudulent, but it is a recognition that, unlike private sector enterprises, governments will continue almost in perpetuity in one form or another and thus collecting our taxes to meet these and other state expenditures.