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Aging Europe: Rising costs threaten EU pensions (www.dw.com)

submitted 2 months ago by [email protected] to c/[email protected]

9 comments fedilink hide all child comments

Europe's population is aging fast, forcing EU states to spend more on pension benefits. While governments want to raise the retirement age, savers are calling for a more flexible approach.

Europe's demographic time bomb has been ticking for decades, with societies of European Union countries growing older and people living longer. More than a fifth of the European Union's population is now aged 65 or older. That figure is expected to reach a third by 2050. The World Health Organization warned last year that 2024 would mark the first time that over-65s would outnumber Europe's under-15 population.

Despite large increases in immigration over the past two decades, the continent still needs to attract enough workers whose taxes can help cover the growing cost of public pensions. Economists predict that by 2050, there will be less than two workers in Europe for every retiree, compared to three now.

Meanwhile, the annual public pension bill has reached more than 10% of gross domestic product (GDP) in 17 of the EU's 27 states — all but one of them in Western Europe. In Italy and Greece, pensions cost public finances more than 16% of GDP.

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[–] [email protected] 9 points 2 months ago

The bullshit about all of this is in the 80s the Dutch system was flush with cash, everything was setup for success, easily Beiing a lble to pay for the wave of pensioners. Then our government decided that there was too much idle cash, cut on the payments into the system by giving employers a lower percentage to pay. The pension fund who UpTo then could only invest safely in government bonds and such where given the freedom to invest in the market and make higher yields. Now 30 years, the 2008 crash and a pandemic later... There is a cash crunch.

And the people that enjoyed the higher salaries because of the rebates to employers are complaining their pensions are not being indexed because they too got shafted, but some at least they own their houses. The people that retired only on the governments retirement plan are mega screwed.