In The Yorks Post, correspondent Malcolm Healey explains it rather well:
'A public servant retiring in the 1940s at the age of 60 would expect to draw his pension over eight years, until 68 (the life expectancy of a fit 60-year-old at that time). His son, retiring in the 1970s, again at 60, would draw his pension until 78, a period of 18 years. His grandson, retiring in the 2000s, at 65, could be receiving his pension until 88 or beyond, a period of 23 years.
The actuarial requirements to fund such payments within the private sector are astronomical and have, in recent years, led to the abandonment, closure to new entrants, or revision of many schemes. It is likely that this trend will continue.
Following the 1971 Census, the statistics produced were analysed and the subsequent report, published in the late 1970s, revealed that when a child born in 1971 reached the state retirement age of 65, in 2036, the working population would be equalled by those in retirement. This would mean that the contributions to the National Insurance Scheme of each employee and his employer would need to be sufficient to pay one pensioner, meaning either very large contributions for the worker or very small pensions for the pensioner.
Successive governments have ignored this statistic. If you are more than a few years away from retirement, and relying on a reasonable state pension in your old age, be afraid, be very afraid.'
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