Wednesday, February 15, 2017

Pensioners get more money than workers in the UK

Inequality among generations is a serious issue in many developed countries. Not only in Japan, but also in the UK, competition among generation seems to be real.

In the UK, the average income of pensioners became higher than their working families, according to a new survey. The Resolution Foundation think tank found that pensioners households were better by 20 GBP than working age households.

International Business Times: Pensioners are now better off than working families due to weak wage growth

This contradictional structure was formulated by some backbones. The wage growth in young workers is sluggish. And some elders receive extra incomes including private pensions. The rule for distributing state pensions is so solid that it hardly reflects poverty in young workers. The government is willing to change the scheme. However, this will face the resistance of elder voters.

The low economic growth is beneath this issue. And it is shared in many developed countries. I have no treatment against this structural problem.

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