The real trouble is: Todays generation is paying for todays pensioners. There are going to be more pensioners than workers shortly. Therefore the workers will be taxed more in order to subsidise pensioners.
Subsidise - not a careless word nor one designed to inflame. Each generation is subsidising the previous one. Thats is the way our welfare state was set up.
In other countries, Singapore is one very good example. They have similar, but not the same, state systems BUT the pension contributions go into YOUR pension pot and accrue in a similar way to our perception of private pensions.
That would leave the question in our country of who 'keeps' those who have never worked for some reason (not an attack for those on benefits, but we do have a previous generation of women, now elderly, who have dedicated their lives to being home-makers).
The baby-boomer generation have exacerbated this mess. They had very short working lives, frequently retiring at 50 or 55, longevity now pushing them to living until their 90s, very enhanced final salary pensions. They were also the ones who pushed up house prices beyond affordability for the generation under me. Jeremy did a very good article on this recently.
We can blame immigration all we like but in truth - and no one likes the raw truth - advances in medicine and reduced families means people are living longer. The whole demographic of the population is shifting. It wont be much longer before the majority of the population are pensioners. The bloody labour party mantra of cradle-to-grave has lulled a generation into a false sense of security that they didnt need private pensions etc - the state would do all that for them. The state simply cant afford it now.
Im not an economist (clearly!) but even I can see something has to give. The country cannot keep on dishing out money the way it is.
My kids - and yours too - will be working a lot longer for much less reward. The golden prosperous era has gone.
I do realise the above is quite a simplistic view, as I say Im no economist.