Brendan Keenan: Getting pensions right for posterity
Do the sums: less money must mean smaller pensions -- but the capital cost of public sector pensions is still rising and has now topped the €130bn mark
IN these desperate times, there is not much we can do for posterity. But we might do what we can not to make things worse than they need be.
There is much lamenting over the level of debt that we will bequeath to our children and grandchildren. But debt is a slippery concept. Inflation and growth reduce the real burden. It is possible -- many say probable -- that some of it will be defaulted upon. Depriving posterity of its savings may be more harmful in the end.
The younger generation has already lost the National Pension Reserve Fund. This was raided to recapitalise the banks -- and most of it will probably never be seen again.