4 ms·

older generation is not wise at all. they should be saving for when the current pension and old age benefit system collapses. i guess they are the same people t

by ptah 7y ago

older generation is not wise at all. they should be saving for when the current pension and old age benefit system collapses. i guess they are the same people that gave us climate change so i am not surprised at their shortsightedness

hrktb 7y ago
A sizeable portion of the older generation having fun right now also owns property, and will massively oppose any political move that could depreciate their property values. Sadly I don't think they are out of their mind spending so much, a lot of them have passed the FU point (enough assets to live decently whatever time is left for them)
- ptah 7y ago
  the point is that it won't be a voluntary thing like a political move that will wipe them out economically
ThrustVectoring 7y ago
What you're saying makes sense for individuals, but not the generation as a whole. Total retiree spending is entirely financed by a combination of current tax receipts and selling assets. Pay-as-you-go and financially funded schemes are substantially equivalent here - current retiree consumption is 100% funded by current workers, the only difference being whether it's called something like "Social Security taxes" or "student loan payments". What additional saving does is improve the standard of living of current retirees, through increasing asset prices. What old people need is to invest in the productivity of current and future generations, so that society is rich enough to support them how they'd like without squeezing the life out of current workers.
imtringued 7y ago
They should spend their money as long as the current working population is large enough to satisfy the massive demand of the retirees. The workforce is shrinking over a long time frame. In 20 years there might be more pension money than there are workers to fulfill the demand. The end result is inflation because everyone is bidding prices up. Even if you double their savings, the end result could be zero because the inflation will eat the savings up. However, I don't think this is a big deal for the current boomer generation unless their average life expectancy suddenly reaches 90 but by the time I retire I wouldn't be surprised if there are labor shortages in developed countries.

by ptah 7y ago

hrktb 7y ago

A sizeable portion of the older generation having fun right now also owns property, and will massively oppose any political move that could depreciate their property values. Sadly I don't think they are out of their mind spending so much, a lot of them have passed the FU point (enough assets to live decently whatever time is left for them)

ptah 7y ago
the point is that it won't be a voluntary thing like a political move that will wipe them out economically

ThrustVectoring 7y ago

What you're saying makes sense for individuals, but not the generation as a whole. Total retiree spending is entirely financed by a combination of current tax receipts and selling assets. Pay-as-you-go and financially funded schemes are substantially equivalent here - current retiree consumption is 100% funded by current workers, the only difference being whether it's called something like "Social Security taxes" or "student loan payments". What additional saving does is improve the standard of living of current retirees, through increasing asset prices. What old people need is to invest in the productivity of current and future generations, so that society is rich enough to support them how they'd like without squeezing the life out of current workers.

imtringued 7y ago

They should spend their money as long as the current working population is large enough to satisfy the massive demand of the retirees. The workforce is shrinking over a long time frame. In 20 years there might be more pension money than there are workers to fulfill the demand. The end result is inflation because everyone is bidding prices up. Even if you double their savings, the end result could be zero because the inflation will eat the savings up. However, I don't think this is a big deal for the current boomer generation unless their average life expectancy suddenly reaches 90 but by the time I retire I wouldn't be surprised if there are labor shortages in developed countries.