Household Bills
Heavy taxes will have to pay for ageing population – think tank
In a report titled The Government Debt Iceberg, Cato Institute senior fellow Jagadeesh Gokhale asserts that to fund future pension and social care obligations, the government will need to cut spending by more than a quarter, cut health and social protection spending by half, or impose a significantly higher tax burden on those still able to work.
Professor Philip Booth, editorial and programme director at the IEA, said: “Without reform, today’s young people are likely to be disappointed, either in terms of higher tax rates or in terms of reduced future benefits provided by government.
“The quicker the government changes policy, the more painlessly the situation will be resolved. For too long people have voted themselves benefits to be paid by the next generation of taxpayers, not by sacrifices that they will make themselves.”
The IEA has called for the government to do more to ensure that individuals save for future pension and healthcare costs themselves, asserting that governments will sink into a mire of undermined investment opportunity and reduced growth potential if they do not address their fiscal imbalances.
Without significant changes to spending levels, the report holds, huge sacrifices will have to be made by future generations through higher taxes or reduced benefits.
Tag Box
There are 0 Comment(s)
Everything you wanted to know about ISAs…but were afraid to ask
The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...
Your right to a refund if travel is affected by train strikes
There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...
Could you save money with a social broadband tariff?
Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.
What will happen if rates change
How your finances will be impacted by a rise in interest rates.
Regular Savings Calculator
Small regular contributions can build up nicely over time.
Online Savings Calculator
Work out how your online savings can build over time.
DIY investors: 10 common mistakes to avoid
For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.
Mortgage down-valuations: Tips to avoid pulling out of a house sale
Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?
Five tips for surviving a bear market mauling
The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...
Money Tips of the Week
© AE3 Media Ltd, Floor 7, Lincoln House, 296 - 300 High Holborn, London WC1V 7JH, Company.