PA executive chairman, Jon Moynihan, is quoted in Pensions Week on the pensions liability. Jon attended the presentation of the Institute of Directors’ report on public sector pensions and gave his reaction to the report.
The article refers to ‘industry heavyweight Jon Moynihan’ and describes his comments as ‘one of the strongest arguments from the floor’.
Jon Moynihan says: “There is a good possibility the pensions liability – that everyone accepts is already of a greater size than the entire national debt – will increase unexpectedly to far larger proportions as people live longer than current extrapolations imply.
“A ‘Moore’s law of longevity’, which would imply exponential growth in the average length of life, soon must be acknowledged as a distinct possibility.
“If this transpires, the national debt will balloon to multiples of existing levels and the government of the time will find itself forced to take the abhorrent action of reneging on legally contracted liabilities.”