http://www.bbc.co.uk/news/business-11996504


This will cause problems for everyone. Either higher taxes or much lower spending.

The article suggests it's not as bad as the attention grabbing headline

Yes some of the deficit can be solved over time by higher contributions and a switch to average salary schemes. There are many years that these deficits can be recovered over.

Both the unions will fight tooth and claw to stop.

Well the good news is we're losing 900 council workers down here, so that's some way towards reducing that figure.

Actually a switch to average salary benefits the majority of workers, especially the average worker. The few who gain from final salary schemes are generally in senior management.

Higher contributions are a must for all schemes including private schemes. Governments should mandate a higher minimum contribution for all public and private schemes. Unions will have a tough sell on blocking higher contributions. All pension funds are suffering from under acheiveing investments and increasing liabilities. Contributions from both employers and employees need to be increased substantially.

Nest to the rescue!