Why does the author recommend announcing reform years in advance?
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: A. So that people can adjust their plans and nobody is surprised
- Step 1: The passage says gradual reform announced in advance means nobody is surprised.
- Step 2: That gives time for adjustment.
Answer
So that people can adjust their plans and nobody is surprised.
Why not the others: The reasons in the other options are not stated or implied.
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