As human life expectancy increases, the National Pension System needs more funding to provide for extended retirement. But across the developed world, the number of people working and paying into these schemes has stagnated or declined, and pension administrators are struggling to increase them. Most economists agree that we all need to work longer and save more or earn less. But watering down these long-established rights is risky.France shook Massive protests after the government pushed through a very unpopular pension review. Many other countries are delaying action to address perhaps the slowest financial crisis of our time, exacerbated by the COVID-19 pandemic.
In developed countries, due to declining fertility rates, the ratio of elderly to working-age population was 30 per 100 in 2021 and is expected to reach 48 per 100 in 2050. Japan’s ratio is already about 50 out of 100 people, and is expected to exceed 75 by the middle of this century. According to one report, this widening imbalance means that the combined national pension deficit of the eight largest economies could reach $400 trillion by 2050. analysis According to the World Economic Forum. This is roughly four times the world’s economic output today.