Will Anyone in Europe & the USA Have a Pension after 2030?

GRAYLL
GRAYLL
Jul 13 · 4 min read

The topic of pensions is rather controversial, considering that we are living in a time when everything is changing by the day. However, drastic changes are imminent, meaning that we have to go with it and try to come up with practical solutions to the problems that arise along the way. So, in the future, we might be speaking of the age of no retirement. Why is that?

Simply put, the fact that in some important global economies a higher ratio of the population is getting older is a major contributing factor. Old age is a scary prospect, and it has led to numerous concerns in Britain, Germany, France, Italy, Spain, Switzerland and the USA and many more countries. More specifically, by 2020, in Britain, it is expected that both genders will have to work till they’re 66. In fact, research showcases that if we want to benefit from the same retirement advantages as former generations, future generations will have to work until their 80s. And as the Baby Boom generation retires, there will be even more pensioners and fewer workers to support them. Additionally unemployment rates are probably higher than official figures due to the way statistical methods are applied.

Raising the Retirement Age Will Diminish Productivity

On the other hand, even if raising retirement age might seem like a viable solution at first glance, the downside is that it will decrease the level of productivity. Essentially, when it comes to long-term plans such as pensions, there are many risks that come with the territory. And even if ministers have been discussing pension reforms for years now, the reform is yet to appear or is yet to make a worthwhile difference for the better.

In lines with a 2018 report provided by the European Commission, public pension spending is anticipated to reach 14.5 percent in 2040. That is to say, aging truly comes at a high cost and the situations to this problem seem rather limited. Another measure embraced by most European countries is restricting access to early retirement. In this respect, the minimum number of contributory years necessary for qualifying for a full pension has been increased. At the same time, penalties have been implemented in order to discourage people from pursuing early retirement.

What does this mean? Will anyone in Europe still have a pension from 2030? Most European nations — France, Germany, Belgium, UK, Switzerland, Spain, Austria, and many others — will most likely be dealing with a crisis. That’s mainly because they stand for pay-as-you-go-countries (PAYG).

In other words, the public coffers don’t have anything saved up for paying future pension obligations. This means the money for paying the pensions must come out of the yearly budget. The crisis is looming generally because the number of retirees is growing by the year whereas the number of workers paying their contributions is diminishing.

The topic of pension funds in Europe is definitely a worrisome one, and it seems that Europe will be dealing with a major crisis. Concurrently, this crisis is more complex and major than one may think, making it challenging if not impossible for politicians to fix it overnight.

With global economies and financial systems interwoven in complex often unforeseeable ways, the unraveling of the USA’s Unfunded Liabilities crisis will have a major impact on the rest of the world as it’s estimated to be between $120 trillion and $220 trillion.

The Bottom Line

The worst thing is that politicians have been telling people that the pension system is safe and foolproof and that their entitlements are a guarantee. But the increase in government debts as well as the growth of real estate prices and other factors, are all aspects that effectively influence the global economic situation, increasing the sense of uncertainty for future generations, especially with the next financial and economic crisis looming on the horizon.

GRAYLL will be publicly offering a new App in October 2019, that is connected to an automated algorithmic system that is powered by machine learning and artificial neural networks. The GRAYLL App aims to simplify & automate investing & trading and obtaining higher returns to provide users with options to become independent from traditional financial systems and offer different saving & investment options.

You are already able to invest in GRAYLL and benefit from this unique opportunity, email hello@grayll.io

GRAYLL

Written by

GRAYLL

A simple App for Freedom, Prosperity & Wealth Inception grayll.io

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade