"Sorry the money's already spent...."
The modern retirement regimes established after WWII are recent from an economic perspective. At the time, the economic growth and the demographics were strong enough to support these schemes and in some countries, they were taken for granted.
The anemic economic growth, the lack of returns on assets and an ageing population have forced the governments to reduce the pension benefits to balance the existing resources.
Beyond economic growth, the recent collapse in Demographics makes the age of retirement irrelevant as there just won't be any young contributors to these schemes.
Facing these shortcomings, various governments are now promoting privately funded regimes for those who can afford them while some kind of elderly minimum wages are being introduced for the less fortunate.
In this section, we explore the sustainability of these schemes as well as their financial viability in a highly indebted world.
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