Trying to figure out what he meant.

< Previous | Next >

tsiyaku

Senior Member
Turkish
Hi everybody, this passage is from a speech by David Cameron at Davos. Grammatically I fully understand these sentences but there is one point I can't really get.
I am studying public finance and from financial point of view I can't understand why it would be wrong for a financial institution to advise somene to save. I need to understand what he is trying to mean in this last sentence.

<-----Video clip removed by moderator (Florentia52)----->


And this is the passage: "Prime minister, you have talked a lot about the good things that Europe has, but it also has an aging population, with state-funder public health systems and state-funded pension systems. Could you talk to us a little about how you think those should be tackled?
<-----Excess quote removed by moderator (Florentia52)----->. If you look around Europe almost every country is looking at raising pension ages, it is something that we have a programme for in the UK and we also have a programme for modernising our pension system. We have got to create a system which encourages people to save. The system we inherited was one where there was so much means testing of benefits when you reach pensionable age that actually it would almost be wrong for a financial institiution to advise someone in their 30s and 40s to save. And that is crazy. "

Thank you in advance.
 
Last edited by a moderator:
  • GreenWhiteBlue

    Senior Member
    USA - English
    Do you understand "means testing"? Apparently, older people who have savings are not eligible for old-age pensions. Thus, if you want to receive a pension when you are old, it would be wrong/inadvisable for you to save money to have when you are old.
     
    < Previous | Next >
    Top