well most Pension Systems work like this, every worker pays in and every Retiree receive money. It isnt invested, it just goes from the one group to the other immediatly.
Those Systems that do invest, usually invest heavily into Government Bonds, which have now peaked in price and with the low interest rates in the last 10% could not generate enough dividends to make the system work. In 1950 there were more workers, about 15 for less Pensioners about 1 Today its about 2-3 workers for 1 retiree or Pensioner troughout the "Western World" Due to too less children being born and raised nowadays and rising healtcare cost in old age, rising rents, falling house prices, slumping economy, low growth, low interest rate environment, this imbalance will come to a head by 2030 when the Baby Boomer Generation has mostly retired from working/producing as an age group and goes into mostly consuming. Here is a good Video explaining this: https://www.youtube.com/watch?v=kmtjJVC_niI You can skip the animated Part and skip to where real people explain the facts ;) I cant remember when i last had a talk about Pension with anyone below age 50, yet its exactly us young people who should be discussing how we can fix the system so that we and our children can also enjoy a good pension in our old age in a sustainable manner. Government and Healthcare and Pension chew up the resources needed for growth and investment for the future, without being productive. I would say, radically tear up the monopolies in healthcare, medicine, medicinal devices in hospitals, invest into AI and robotics in that field, have a discussion if its worth it to give expensive and highly stressful anti-cancer therapy to people over 80, start a discussion how we can organzize our society more efficiently! Allow retirees to be more involved in teaching, in schools, share their knowledge with the young generation, assist the teachers. We got 25% of population retired we only got 1% of population that are teachers! Help them teach the new generation! Especially now that with the EU and Schengen so many people with low education come to Germany, Switzerland, England, Sweden, teachers obviously are above their capacity and could use some help :) Comments are closed.
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AuthorPascal |