Maybe instead we should try investing in this area (reducing the burden on services) instead of simply trying to reduce the quantity of folks claiming from the state pension pot.
Maybe instead we should try investing in this area (reducing the burden on services) instead of simply trying to reduce the quantity of folks claiming from the state pension pot.
Now people live way longer, but the retirement age never got adjusted properly to the new reality. So 15-20 years of retirement is the new normal.
In addition, way fewer young payers for the now old.
I think it is possible, but we need to raise (corporate) taxes a lot, and this needs to happen globally, as companies move.
As a star I would love to see global minimum corporate taxes, and then take it from there.
Isn't that something for the individual to decide, not the collective? Many derive from work a lot of meaning in life. If working is what makes some people happy, it would be nice to not punish people for working until they die.
> I'm not saying this is an economically easy problem to solve, but we focus so much on economics and so little on policies that make people happy.
Absolutely!
Spend less, save more. Vote for governments that do likewise.
https://www.gov.uk/government/statistics/pensioners-incomes-...
They'll go directly from factory line to care home.
I knew a guy who worked full time at a bank at 85. He said all the time he didn't have to work but what else was he going to do all day? A big reason he was able bodied at 85 was from working and not sitting home all day.
I think we have confused retirement fund/planning marketing with reality.
The retired people I know are physical mess from retirement. Alcohol and restaurant food all the time, will be needing long term care much sooner than if they had worked longer.
Only if they are poor. If they're rich, they can continue "producing wealth" from interest and investments even after they're dead.
It's a silly thing to say, of course, but it's built into most people's assumptions who are discussing it.
I might be misunderstanding your point, but I think they might be? E.g. in the UK:
> By 2023, the richest 50 families in the UK held more wealth than half of the UK population, comprising 34.1 million people
But it turns out young people become middle-age people, become old people, and we're all in this together. The real problem is not about how the pie is split across generations, but about the realities of lifespans, economic production, and expenses. If you're responsible for funding the entirety of your retirement, all of this is abundantly clear. When you nationalize retirement, all sorts of budgeting tricks start happening, like "borrowing" to fund other programs, papering shortfalls via population growth, etc. Then you start getting age warfare when the govt has to eventually cut back.
You could dissolve the national retirement plan, but that seems like a bad idea for similar reasons as entirely dissolving national welfare and insurance programs. It will always be the case that some people, need some help, some of the time. I guess in my ideal world, it's reduced to a much smaller safety net, because the government is managing the economy well enough that the populace has the wherewithal to save appropriately, and they are educated enough to do so.
Having people fund their own retirement would be ideal from a economic standpoint, but given the histories and complexities of existing systems, it is probably not acceptable politically, or morally, in any country. Honestly it's a distraction.
At the end of the day, a country cannot tolerate too many freeloaders. It doesn't matter if they're pensioners or retired at 50, living to 100 hedge fund managers. Productivity is really the only thing that matters for a countrie's economic destiny.
Or a population that can produce the same amount of stuff and services with fewer and fewer workers. Fortunately that's what capitalism excels at.
Is it better that retirements are funded by this surplus from the increased productivity, or by direct taxation on the income of young workers? Income growth doesn't keep pace with productivity so it's an easy answer.
Taxing the income of current workers to directly fund current retirees is the real "snatching away what you produced". If more national pension plans invested in broad-based stock indexes instead they wouldn't need to take more and more money out of young people's pockets.
Capital ownership entitles you to its returns. Young workers typically don't own a lot of capital. So it comes down to either retirement plans owning it, which means young workers also get its returns when they retire. Or a small wealthy elite could own it all, and everyone else gets left out, reduced to moving a dollar from an youngsters pocket to a retiree.
This doesn't require any investment or technological development; it just requires making rational-but-politically-nuclear policy changes reducing the infinite tap of publicly-funded extremely-low-ROI medical expenditures on old people.
An absurd fraction of medical spending goes to protracting the suffering of old people just a bit longer. We can simply stop doing that, given the political will to do so.
Extending people's lifespans won't do much to alleviate these expenditures, except perhaps to slightly dilute the amortization schedule.
How these tax cuts are distributed over the population is... not very evenly. There was even an article yesterday in the NYT (iirc) that warned about wealth accumulation patterns in Sweden.
It is the same neoiberal experiment that the US has had since Reagan, just with some more social democracy.
I think it is a balance.
Auctioning this work to private companies should theoretically make it more cost efficient - and I think it is.
At least I hear that workers a much more stressed than they were historically, so I don't hope this comes with no benefit...
I personally find it hard to reconcile the concept of socialized healthcare with UnitedHealth Group being apparently the 7th company by revenue in the world, at least I don't think that's what Europeans would mean by "socialized".
https://countryeconomy.com/countries/compare/denmark/usa?sc=...