@Alexandra2001
On the basis of the actual financial numbers, the baby boomer cohort will extract far more financial resources from the UK economy vs what they paid in
Very true
Now, if you want to have a discussion about how we can possibly pay for that with various combinations of tax rises, spending cuts, and benefit cuts....then that's fine
Cut what spending? and what benefits? we have Cornwall Council wanting to close ALL their community leisure centres, no money to pay even the M.W for carers & benefits frozen for the last 11 years.
We need wealth taxes, probably on assets, as cash is too easily hidden or got rid off, no one needs to be a billionaire plus an overall of council tax, £1m + homes get off so lightly compared to a modest 3 bed semi.
I agree that the situation right now is complicated.
The issue is that the UK population as a whole is getting older due to the baby boomer cohort progressing along via the age pyramid. Average age is now 44 in the UK. This will also keep increasing slowly.
Whether we think its fair or not, they will end up utilising healthcare more (older with more complex needs), will require more resources directed towards pensions etc.
The question is: how do we do this in a more "fair" way? Specially towards the young which have been absolutely hammered this past decade?
Inter-generational fairness is very important as lack thereof creates material polarisation and eventual brain drain (young bright people emigrate abroad which makes the problem even worse).
So, lets divide this into three:
- Healthcare
There really is not much you can do here except increase funding for the NHS, specially for hiring more nurses and doctors. We need them not just now, but also for the next 30 years plus. Healthcare inflation has always been a problem, and that is not something that is going away. NHS actually does a decent job of keeping some of the costs down (specially cost of drugs).
We will all benefit from having a properly staffed and funded NHS, so this is not a major sticking point viewed from the point of young & old.
- Pensions
I keep hearing the argument of "but the UK has the lowest pensions in Europe".
I always laugh at this argument because the hypocrisy is absolutely astonishing. The reason why the French and Spanish have much higher pensions is because they also pay in much higher contributions, and have been doing this for decades.
None of the Boomers who complain about the pension being "too low" contributed to that extent. So essentially, they want higher pensions at the expense of the working folks. The hypocrisy is astonishing to be perfectly honest.
The only answer to that is:
Ok, you can get a higher pension as long as you contribute adequate taxes on those payments. No more free loading for you.
- Social Care
Any person that needs social care and has assets 100% needs to draw down on those assets to pay for their care.
Again, its not the taxpayers job to subsidise your wealth via your house. Whether your children inherit the house is an emotional argument which has zero basis on the care situation. They can stump up the money for your care if need be, but its not up to the taxpayer to subsidise their inheritance.
The taxpayers should ONLY step in when there are no assets to use (poor or low income), or existing assets have been used up. Thats it.
Now, for the younger people (40 or less) who want more of an insurance based system once they get older (so they might require care), a premium paid directly to the state via their salary (like NI), which would be contributory, can be used. So if they do require care, that LT care insurance would kick in.