Saturday, April 3, 2010

Swedish pensioners are lucky

Income gap among Swedish pensioners has grown over the last 10 years, according to a report from Statistics Sweden.

Of course this is yelled about in media as “unfair”.

Two things here.

Firstly what is unfair about a person working harder and saving more during his/her lifetime and reek the benefits later? What it is unfair is that the gap isn’t wider.

Secondly, Swedish pensioners have their pensions covered, at least for the most part. Earlier changes in the pension system and an arrangement that makes the pension debt pretty low in comparison with other countries have seen to that. Italy, Belgium and many other EU countries have not only squandered that money, they have also borrowed on it as collateral. The pension debt in some of these countries is over 300% of GDP. This isn’t a direct problem for Sweden. However, it can become one in the near future when the mentioned countries start to default for this and other reasons.

In other words, it is time to get out of the European Union.

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