Here’s a bleak prospect: there is every likelihood that in less than 50 years’ time there will be no fish left in the sea. Nada. This is the stuff of climatic nightmares and is due to three cumulative factors: overfishing, dumping fertilizer in industrial quantities into the oceans, and rising sea temperatures.
All three are happening at breakneck speed and our fish are facing an “extinction event”. It’s not that no-one knew about this, it’s just happening much faster than anyone realized.
Something equally grim is unfolding in our own beloved industry and the timeframe for Armageddon is even less - maybe 30 years, if that.
Here’s the simple fact. We are staring straight down the gun barrel of an impending global demographic and socio economic catastrophe which will fire its lethal rounds over the next two or three decades, and it will be every bit as disastrous as an empty, sterile sea.
I want to suggest four factors at work in the pensions crisis. Here is the first.
The Government is broke
It is the Government’s basic, sacrosanct and perhaps greatest duty to ensure that the citizens it serves have sufficient resources to live adequately in old age. I’m not talking about foie gras and caviar or holidays in the Maldives and Courchevel; I am talking about having sufficient food to eat, heating in winter and decent, affordable medical care in your twilight years. But the simple unarguable fact is, the UK Government is facing an unprecedented and chronic lack of funds and it can’t deliver on its obligations.
The situation is so unspeakably bad, the Government is taking money away from old people by decreasing the level of inflation proofing, switching from final to average salary pensions and a bunch of other like-minded measures.
Why is the government in such deep trouble? Well, one big reason is the gargantuan National Debt. Currently around £4.8 Trillion (if you include unfunded public sector pensions) you would need a pile of £50 notes 6,561 miles high to pay it off. Long story short, there’s no help coming from the Government in the hour of need or any time soon.
That’s Part One of the story and I wrote this prezi to help explain it.
[Please note that all opinions expressed in this blog are the author’s own and do not constitute investment advice. Click here for full disclaimer]