Duke of Marmalade
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The state provides many subsidies to those who cannot afford it - welfare, healthcare, education. These are all PAYG. I am sure their present value combined is well over a trillion. The focus on State Pension seems to derive from the idea that somehow people have paid for it through PRSI and therefore have a legal claim on the State. It also leads to false comparison with individual pension arrangements which by their nature must be explicitly (rather than implicitly) funded.Hi Duke
At what stage do you get worried?
I will get worried by the sustainability of all these State supports if and when our expectation of continued real growth in the economy shudders to a halt or declines.
I am not sure that singling out the State Pension and putting a huge present day value on it, about which the Appendix highlights enormous sensitivities on the numbers, is very helpful.