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The problem with pensions is that they need a pyramid age distributions. That's to say lots of young people to pay the taxes to fund the top of the pyramid. Tha
by christkv 13y ago
The problem with pensions is that they need a pyramid age distributions. That's to say lots of young people to pay the taxes to fund the top of the pyramid. That scheme is broken in the west so the whole system will creak on until the younger generations cuts the funds.
The excessive entitlements granted over the last 2 generations is unsustainable. In Spain many baby-boomers have 2X-3X the pension income of a full-time employee. How is that sustainable ??
- gohrt 13y ago> The problem with pensions is that they need a pyramid age distributions No, they don't, necessarily. There is a balance to be struck with regard to magnitude and length of pension payments. 2-3x the pension income of a full-timer seems excessive at a glance. That doesn't disprove the existence of a reasonable pension scheme.
- adventured 13y agoNone of it is sustainable, not even remotely. Falling populations alone force a requirement for ever higher taxes due to a downward spiral equation on taxes / people / savings / standard of living. The next generation always has to pay more for the last (greater population in the past each cycle), while having less savings and a lower standard of living.
- christkv 13y agoActually for this generations the squeeze are two way. One is higher pensions the other is higher housing costs. A growth in house equity value is a transfer between generations as the older generations came into the property value at the bottom. Norway right now is an extreme example of this as the high prices of property squeeze out the young from the market and transfers money to the older generations.