Current statistics show that there is far below the average of 2.1 children per household, which would be considered the replacement rate (Jackson & Howe 2008). For almost the entire 20th century, nations all over the world saw continuous population growths, with more being people being born than dying. Yet, today, this population growth has declined in a number of major regions, including many European nations. This then means that there will be fewer individuals in the younger workforce that should be helping support the elderly population by adding in funds to pension plans. Current structures are under the pay-as-you-go plan, where today's workers pay for today's retirees in hopes that future workers will do the same for them (Slater 2008). There are now only two workers for every pensioner (Slater 2008). This creates a situation where the workers are unable to appropriately keep up with providing money for pension payments.
People currently being paid pensions are now, on average, working less but getting paid more. The last few years have witnessed the highest pensions paid out in the last few years than ever before. Also, with life expectancies getting longer and longer, many retirees are enjoying more years paid under their pension plans (Slater 2008). Pension plans were created when life expectancy was much less. The original Prussian system was implemented when the life expectancy in that region was only around 45 years old (Wells 2005). Modern pension systems in the United States were established when the average life expectancy was around 62-65 years of age. However, the life expectancy now averages to around 78 years old, showing increased strain on the systems that fund pensions. With more money needed, it places a greater strain on the system.
Additionally, public pension rates are unreasonable in today's day in age. In fact, they are the largest single source of retirement income for individuals around the world. Some countries...
NASA cannot afford to create new technology, and that is a sign of our lack of support of new science and engineering, something that could be critically short in years to come. In conclusion, there are clearly many advantages to the flat world economy that has developed with the advent of the 21st century, and Friedman does a good job of spelling out those advantages quite well. There are disadvantages,
The U.S. is a property owning civilization and a number of the people wanted land and housing. Americans however scarcely ever create savings. "The country itself lives on other countries' savings by issuing bonds to finance its excessive consumption. The current crisis began with cheap housing loans offered by banks. Banks provided loans but instead of holding the loan in their books, they packaged them into collateralized debt obligations (CDOs)
European Economic Crisis -- Greek Government This paper provides a deep insight into the European economic crisis and the events which eventually lead up to Greece debt crisis. It explains the causes which were responsible for the chaotic and poor financial situation currently prevalent in Europe. It also analyses the current tools used for stabilizing the situation in Greece and the shortcomings in them. It also highlights certain steps and measures
Economic Crisis Policies US current economic crisis is considered to be started from real estate sector. The real sector started to decline in 2006 and it accelerated in 2007 and 2008. Housing prices have fallen from the peak from about 25% so far. The decline in prices left homeowners with no option and they were unable to refinance their mortgages and causes default of mortgages. This default of mortgages and loans
2007 Economic Crisis on American Car market Effect of the 2008 global economic crisis on automotive industries Crisis in the United States Crisis in Canada Crisis in Russia Crisis in European markets Crisis in Asian markets Effects by other related crisis events In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will
UK Pensions Policy" - Social Policy Area The pension policy of the UK is one that is followed as a model by various other parts of the world for its efficient dealing with the problem of pensions for the aged of the UK. The government takes a ken interest in reforms in the area of pensions, and it was for this reason that it announced the latest set of reforms
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