RE PENSIONS
As far as I am concerned calculating a minimum pension based on the minimum wage multiplied by the full-time workweek seems like a logical and straightforward approach to ensuring retirees have a basic standard of living. However, implementing such a system would depend on various factors, including economic, social, and political considerations.
Here are a few key points to consider:
Cost of Living: The cost of living varies significantly between different regions within a country. A minimum pension based solely on the minimum wage might not account for these variations, potentially leaving some retirees in higher-cost areas struggling to meet their needs. (Yet even in the lower-cost areas the pension is not reaching this at the moment).
Funding: Ensuring a minimum pension at the level of the minimum wage times the full-time workweek would require substantial funding. This funding could come from taxes, contributions to pension schemes, or other sources. The sustainability of such funding needs to be carefully evaluated.
Life Expectancy: People are living longer, which means pensions need to be provided for more years. This increases the total cost of pension schemes and needs to be considered when setting pension levels. (While there may be a few people living longer, I don't think there are that many. I know numerous people of my age group, including my husband and some others of whom I was at school with, and younger who have died within the last year or four).
Economic Impact: Higher minimum pensions could increase consumer spending, benefiting the economy. However, it could also lead to higher taxes or reduced government spending in other areas, which might have other economic impacts. (If pensioners were healthier then there would be less dependency on the NHS which is absolutely below standard - the stories I could tell you about my husband's last visit to hospital before he died would make you ill.
Existing Pension Systems: Many countries already have complex pension systems in place, including public pensions, private pensions, and social security schemes. Adjusting these systems to implement a minimum pension based on the minimum wage would require significant changes and coordination. However, I believe it could work!
Political Will: Implementing such a change would require political support and might face opposition from various stakeholders, including employers, taxpayers, and current retirees who might be affected by changes to the existing system. If this new system could be implemented covering everyone at pension age, from that date forward, this would take a strain of all kinds of services. People would not mind so much having to use electricity; there would be less people depending on NHS - people would be in a happier mindset and elderly people would not be forced to work, leaving more jobs open for younger individuals.
While the idea has merit and could potentially provide a more predictable and fair pension for retirees, its implementation would need to be carefully planned and balanced against other economic and social factors.
Summary: At the moment, I think the UK is crumbling. Some people are depending on charity shops, food banks and free giveaway sites to survive. Shops are standing empty, then many are taken over by charities. Implementing such a scheme would in effect put more money in the hands of pensioners which would mean that pensioners could have a healthier life-style - there would then be less pressure on the NHS. The extra money in pensioners pockets would raise sales in shops, and as many individuals own properties in need of repair give pensioners enough to employ contractors and others because of this there would be better housing for the next generation. Perhaps you are too young to realise this Mr Prime Minister but what you give out, you get back it is a scientific law of nature, a scientific law of the universe. Everything multiplies!