With the political power of the baby boomer generation growing, it is easy to see a future where workers contribute a greater percentage of their wages to fund other people's retirement than to their own.

For some time now, each generation has demanded more of the following generation than they were willing to give to the last.

The cost of the ageing of the population will overwhelm our existing tax base. Credit:Glenn Hunt

Having reluctantly provided a penny when in employment, retirees believe they are entitled to demand a pound from current workers. Not surprisingly, several generations with this attitude has seen the cost of the pension as a percentage of wages almost double over the last 40 years.

Only part of this rising cost can be explained by increases in life expectancy, especially life expectancy in retirement.