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The plan would allow early retirements, but with smaller pensions.
In exchange, the account-holders would get smaller pensions from Social Security.
Those who retire after fewer years in work get smaller pensions.
Members of Parliament will now get smaller pensions, and only after five years in office.
Apart from anything else, many of them will get smaller pensions than they could and arguably should have done.
Mr. Paterson has already struck a bargain with the unions: minimal layoffs in exchange for smaller pensions for new workers.
Similar(28)
That, in turn, would lead to smaller pension contributions.
Some people may be happier with a smaller pension than others, and higher consumption when younger.
Lower contributions and poor investment returns mean a smaller pension pot.
And lower pay usually means lower or no benefits and a smaller pension on retirement.
Moving to a single rate would plainly have boosted smaller pension pots.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com