What does the author propose?
As people live longer, the cost of pensions rises, and the burden of paying falls on those now at work. Defenders of the present system say that older people earned their pensions by paying in. This is half true. In many systems current contributions pay current pensions, so what the old received was a promise on the young. To say that the promise should be kept is reasonable. But it is not obvious that it should be kept at any cost to a generation that faces high house prices and insecure jobs. The fair course is to share the adjustment: later retirement ages, a higher contribution from richer pensioners and a gradual reform, announced years in advance, so that nobody is surprised.
Answer and explanation
Correct answer: B. Shared adjustments including later retirement, contributions from richer pensioners and gradual reform
- Step 1: The last sentence lists later retirement ages, higher contributions from richer pensioners and a gradual, announced reform.
- Step 2: The only choice consistent with this is "Shared adjustments including later retirement, contributions from richer pensioners and gradual reform".
Answer
Shared adjustments including later retirement, contributions from richer pensioners and gradual reform.
Why not the others: The author does not propose ending pensions for workers, leaving the young with the whole cost, lowering retirement ages or breaking the promise without warning.
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