Strange proposal. We have the same thing happening here and in Denmark, but with one huge difference. It will happen gradually, thus allowing the entire working infrastructure to adapt.

By 2015 (I think it was 2015) every working citizen will have to give at least 15% of all earnings towards some kind on pension fund. So this means it will be counted towards all wage negotiations. Like right now I am paying 10%, but this has been done through negotiations with my workplace in November last year, once the proposal was finalized, resulting in only a small actual wage increase, but my employer now pays 10% extra into a pension account of mine on top of the wages.

Other places, especially state run, have been doing this sort of thing for years, so it's really a minor change.

People who have been working half their lives or more without a system like this will not have their entire government paid pensions removed, but only the parts that they should have earned/paid themselves after the proposal went through.

So all in all as it is right now, this is a wage increase hitting companies rather than the ordinary working people.

This will of course gradually result in price increases, but looking at the very scary prognosis of continuing to ignore the facts, the move is highly understandable IMO.

BTW here state pension age has been 67 years for most people for as long as I can remember.

Well Sleepless

From what you have written it seems that companies in Denmark and the Faroe Islands are encouraged to have a pension fund where both employee and employer are encouraged to contribute to.

Most UK companies were like that in the recent past but companies now put their pension funds in the stock exchange, therefore the employee does not know, until he or she retires, what will be in the pension pot.

Gambling with your retirement is not what most people want but it's what they are now going get.



UK Bob