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The UK's Most Disturbing Number: Total Unfunded Pension Obligations = 321% Of GDP
Zero Hedge ^
| Tyler Durden
Posted on 11/13/2012 9:24:06 AM PST by SeekAndFind
For all our UK readers, who hope some day to collect pension benefits, we have two messages: i) our condolences, and ii) you won't. Why? The answer comes straight from the ONS:
The new supplementary table published by ONS in Levy (2012)10 includes the following headline figures for Government pension obligations as at end December 2010:
- Social security pension schemes (i.e. unfunded state pension scheme obligations): £3.843 trillion, being 263 per cent of gross domestic product (GDP) (£3.497 trillion at end of December 2009)
- Centrally administered unfunded pension schemes for public sector employees (i.e. unfunded public service pension scheme obligations): £852 billion, being 58 per cent of GDP (£915 billion at end of December 2009)
- Funded DB pension schemes for which government is responsible: £313 billion, being 21 per cent of GDP (£332 billion at end of December 2009).
In summary, the estimates in the new supplementary table indicate a total Government pension obligation, at the end of December 2010, of £5.01 trillion, or 342 per cent of GDP, of which around £4.7 trillion relates to unfunded obligations.
Of course, US-based readers should not get their hopes up too much either. With total underfunded liabilities - including SSN and healthcare, in the US well over $100 trillion (on under $16 trillion of GDP) it is only a matter of time before the entire welfare state ponzi scheme blows up.
TOPICS: Business/Economy; Foreign Affairs; News/Current Events; United Kingdom
KEYWORDS: debt; pension; uk
Preview of USA in just a few more years under Dear Leader
Good thing it’s now The UK, instead of “Merry ole England.”
posted on 11/13/2012 9:27:04 AM PST
(FREE REPUBLIC IS HERE TO STAY! DONATE MONTHLY! IF YOU WANT ON SARAH PALIN''S PING LIST, LET ME KNOW)
Dear Leader is not going to help, but this has long been the Social Security model in the US.
Use simple Economarx 101 and tax “the rich”. Cheers!
posted on 11/13/2012 9:31:19 AM PST
(The problem with socialism is that you eventually run out of other people's money.)
we have two messages...
They left out a pretty important third message.
iii) Forgeddabout complaining. period.
As more pensioners realize they won't see the dough, and start to complain, government will naturally become more tyrannical and harsh so that those complaints will not be heard... up to the point that if they are heard, they will be dealt with quite tyrannically... and very harshly.
posted on 11/13/2012 9:33:51 AM PST
("ask not what the candidate can do for you, ask what you can do for the candidate" (Breitbart, 2012))
Remember also, as our debt increases the costs of servicing this debt increases and takes up more and more of the tax revenue. Thus, the unfunded portion of our entitlement obligations is increasing exponentially. There’s a reason for those death panels.
We are already there and then some. Medicare and SS represent an unfunded liability of over $60 dollars. That is almost four times our GDP of $16 trillion.
posted on 11/13/2012 9:43:46 AM PST
posted on 11/13/2012 9:45:42 AM PST
IIRC, I read somewhere this percentage is similar to Illinois.
posted on 11/13/2012 9:47:44 AM PST
(Looting the future to bribe the present)
This explains the sudden arrival of this: Link
posted on 11/13/2012 9:52:28 AM PST
(The truth will out, one day.)
Dang, I was hoping to support a politician who planned to borrow from the UK.
posted on 11/13/2012 10:09:54 AM PST
posted on 11/13/2012 10:16:31 AM PST
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