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HomeNewsAgeing, pension shortfalls sound global time bomb for governments

Ageing, pension shortfalls sound global time bomb for governments

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One of the primary problems governments face today is an increase in the number of ageing retirees receiving pensions.

Life expectancy has increased significantly in recent decades as science and medical technologies have advanced.

Today people live longer, healthier lives, suffering less pain compared to the past.

More people now enjoy the golden years of life when one reaches economic independence and retires.

When one retires from work the economic independence frees one from the worry and stress related to making money.

During this time of life the pension is there to take care of expenses.

This is generally how the majority of the population planned their life, rightfully.

However, this expectation for life could turn into a mere dream because the young and new governments fall short when it is their turn to remain loyal to human values and honor their commitment to the senior members of society.

Governments around the world have been sounding the alarm for some time about how the pensions system may fail, and by the time one retires, there won’t be any funds left to cover the expenses of retirement.

Undoubtedly, the cost of taking care of the retirees puts stress on the government’s various social programs and the country as a whole.

One of the terms commonly used when discussing pension plans is ‘time bomb’.

The pension’s time bomb is the predicted difficulty in paying for corporate or even government pensions in various countries, due to a discrepancy between pension obligations and the resources set aside to fund them.  

That is why there is considerable doubt about the governments' ability to cope with the fiscal responsibilities linked to the growing number of retirees and the shrinking number of workers due to declining birth rates.

Declining birth rates may be good for the planet, but they are bad for countries with ageing populations.

Government statistics show record low birth rates in most countries across the globe with fertility rates for women dropping to below two children.

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