Spanning from the windswept Hadrian's Wall in Northumberland down to North Africa, and from Portugal to the Middle East, the Roman Empire was vast in size. To secure its newly established borders, it required a substantial number of soldiers.
Applicants, amongst which other requirements being aged 17-35, required to be of good character and a minimum height of 5ft 7in.
Usually, joining up was not compulsory and not particularly attractive. A regular wage and the prestige that came from being part of the world's biggest army usually meant signing up for a minimum of 25 years. There was also a good chance of being sent to a foreign country, in rainy and remote conditions, miles away from home, to protect the empire from local resistance fighters who were not generally keen on their colonial masters.
In the year 6 AD, Emperor Augustus of Rome was concerned with a particular matter. Having already incorporated Egypt into the Empire, he was eager for additional expansion, but to accomplish this, he had to find a solution to a significant obstacle in the recruitment process.
His solution was the offer of financial security in a person's later life stage. From then on, all soldiers would receive 13 years of salary as a one-off payment on completion of their 25-year service term.
Was born – a significant commitment for a regime with around 250,000 to 300,000 soldiers at the time.
It's an idea that has endured until the present day. The UK boasts its own generous pension schemes for state employees and approximately 17.2 million current and retired civil servants now possess one, although they receive a lifetime income rather than a one-off payment.
While the Romans may have shown us that a good pension can encourage people to take on public sector jobs, the UK has actually ignored a second lesson,
According to Georgy Kantor, tutor in ancient history at St John's College, Oxford, Augustus was already grappling with a significant financial crisis. Confronted with substantial forthcoming payments for retired servicemen, he took an extraordinary political risk – an unpopular new levy.
Understanding that his senators wouldn't agree on how to fund it, he had them come up with their own ideas. In the midst of the commotion, he simply introduced a 5% inheritance tax, with the money collected going straight to the pension fund. Along with some initial funding and a 1% auction tax, the future of Earth's first defined benefit pension scheme was secured.
Mr Kantor said: "It was the single biggest recurring expense incurred by the Roman Treasury, but on the other hand the Roman Empire wasn't a massive welfare state. It didn't have loads of regular bills and it had a vast territory that was taxed consistently.
“Buying loyalty to the system rather than to the individual commanders individually, there was no rivalry between the generals in securing a better living for their soldiers after retirement, something that was a genuine threat in the previous era, with all of them making grand promises to their soldiers.”
The plan went ahead despite some setbacks. By 13 AD, there was strong opposition to the new inheritance tax. Augustus sought alternative proposals before settling on a property tax and "promising" to introduce that instead, which calmed the opposition.
It's uncertain precisely how long the pension scheme remained in operation, but it did, in any case, endure for the next two centuries. Even when it eventually disappeared, it was only due to the fact that soldiers stationed on the Empire's borders began settling in those places and receiving land allocations instead.
Dr Kantor added: "I believe it was financially viable. It was the largest solitary expense in the Budget, but they didn't appear, until they encountered a numerous amount of other troubles, to be severely economically jeopardised by it."
They probably needed a top-up occasionally, but that was the main aspect. They definitely introduced a new tax and allocated enough for it to operate effectively.
On the other hand, some specialists argue that the UK's public sector pensions system is in a state of disarray.
– and there are no funds allocated to cover it.
to fill the gap that has arisen over the last decade.
If Augustus were in Number 10 today, it's uncertain he'd have the political courage and judgement to introduce such a proposal. According to Standard Life, it would involve a cash gift of roughly £465,000 based on an average salary of £35,828.
This suggests that this fund could generate an annual income of £21,670 for the retiree, rising with inflation, taking into account that people now live for about 81 years, nearly double the 41-year life expectancy of a typical Roman.
Instead, private final salary schemes are shutting down throughout the country as increasing life expectancy is making them unsustainable. People are left with defined contribution pensions – and they’re not putting aside enough.
Mike Ambery, from Standard Life, part of Phoenix Group, commented: "One thing that remains constant is the significance of a decent retirement, and here in 21st-century England many people are at risk of failing to achieve one."
via the most recent public sector pay rise only.
Their pensions will continue to increase in line with inflation, but the incoming funds aren't being invested to cover the costs when they retire. Consequently, the taxpayers' contributions will only continue to rise and there appears to be no end to the trend in sight.
What have the Romans ever done for us? Actually, they've done quite a bit, if we only gave them the credit they deserve.
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