J. M. Keynes Foundation

While this post is not strictly Keynesian in character, the topic of pensions is – deferred payment. Collective Action is, possibly, something that Hayek’s disciple’s will also identify with.

This post will argue that there is too much choice in private pension schemes, as well as not enough members, and that a greater pooling of resources will produce a better result for all.

Now for some statistics, taken from Pensions Policy Institute. As of 2007 there are 53, 800 Private Pension Schemes of which 28, 680 are open to new members. In comparison, there are 320 Public Pension Schemes of which 130 are open to new members. There are 220 times more choice to private pension members than public pension members.

The average contribution (member and employer contribution) is 18.8% for a public sector member and 15.5% (average across Defined Benefit and Defined Contribution) for a private sector member…

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