Letter: Lilley's funded pensions still lay a burden on the future

Leslie A. Pope
Friday 14 March 1997 19:02 EST
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Letter: Lilley's funded pensions still lay a burden on the futureSir: The "burden" of pensions on the taxpayer is a myth that needs exploding.

Pensions, benefits and wages all derive from the gross national product, which is growing at around 3 per cent a year while the workforce gets steadily smaller in the ongoing drive for greater efficiency.

Pensions and benefits on average are much lower than wages for individuals, so that those leaving the workforce reduce their demand on the GNP, leaving more available for others, not less.

An equitable distribution of wealth from the GNP is a national concern, and the pension sector cannot be left to the whims of market forces and private insurance schemes, where profit-making is the main objective and total collapses can occur.

LESLIE A POPE

Wolverhampton

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