HERE ARE THE COUNTRIES WHERE MILLENNIALS WILL STRUGGLE THE MOST TO SUPPORT RETIREES
February 5, 2017 – 5:51 am
Hey there. Just want to let you know we need to pay our bills too. If you can buy a token, it will help in keeping this site alive. Just click on the banner to find out how. If you have feedback, please email BigO.
+ + + + +
JUST TO LET YOU KNOW
To reduce spamming, the BigO website is going through Cloudflare. What it does is scan your browser to ensure the visitor is not a spam. Do not be alarmed as this usually takes only a few seconds. Email us if you still have difficulty accessing the BigO site; or playing or downloading the tracks. If you know a better way of reducing spam, do let us know.
+ + + + +
Look who’s at Number Two? Sheep City $ingapore. Remember who made the policy to “Stop At Two”?* ‘Nuff said. By Tyler Durden.
(* $ingapore’s dictator Lee Kuan Yew started the Stop At Two policy in 1969 to discourage couples from having more than two children. The natural replacement rate reached 1.006 in 1975; thereafter the replacement rate would drop below unity. From 1975 to 2017, a total of 41 years, the government was unable to reverse the trend. Read more here.)
The United States is a demographic time bomb, plain and simple. Over the next 30 years, the US economy will face an unrelenting demographic transition as [about] 75 million baby boomers exit the highest wage earning years of their life and start to draw down what little retirement savings they’ve managed to tuck away while wreaking havoc on the public “safety net” ponzi schemes, like Social Security, that will almost certainly be insolvent in a decade.
Per the US Census Bureau, over the next 30 years, the number of people in the US over the age of 65 is expected to double while those 85 and up will triple. Needless to say, the overall population growth of the United States is a fraction of that which means that millennials are about to get crushed by their parents… so it’s probably a good thing they already live in mom and dad’s basement.
But, since misery loves company, we figured we would take this opportunity to highlight Bloomberg’s “Sunset Index” which tracks the number of working age people per retiree, by country and confirms that the United States is far from alone in their pending demographic crisis.
While France and $ingapore are currently the worst off with only 2.2 workers per retiree, the map below highlights just how pervasive the ageing population crisis is around the globe.
The world’s working-age population is shrinking faster than expected, leaving fewer people to support a growing number of seniors, according to the Bloomberg Sunset Index.
As seniors increasingly outnumber people still in the workforce, pressures rise on investment pools, medical systems and funds to build economies for future generations.
“The demographics cannot be ignored, but there are solutions,” said Suzanne Kunkel, director of the Scripps Gerontology Center at Miami University in Oxford, Ohio. “Those solutions need to be cultural, political, economic. There is no magic answer. The reality is China will deal with it differently than Italy.”
Asia could be facing the toughest choices in allocating resources. The Asia Pacific Risk Center estimates the region’s elderly population will rise 71 per cent by 2030, compared with 55 per cent in North America and 31 per cent in Europe.
Of course, the financial burdens placed on young people around the world as a result of ageing populations is highly dependent upon the extent of social services that have been promised and just how poorly funded those ponzi schemes are… which doesn’t bode well for the United States.
“There are other-than-alarmist views about population ageing,” said David Ekerdt, director of the Gerontology Center at the University of Kansas. “Advanced economies face rather different challenges depending on the social provisions they have promised and the declines in fertility that have occurred in these nations.”
The US, for example, has “very high health-care costs for all citizens,” he said. “I would also say, politically, that it’s a large leap to assume that social spending, if reduced for one group, would be applied to another group.”
But, not to worry, we’re sure that markets are adequately discounting these long-term demographic risks that are almost certain to lay waste to the global economy over the next two decades.
Note: The above article was posted at zerohedge.com.
+ + + + +
3 Responses to “HERE ARE THE COUNTRIES WHERE MILLENNIALS WILL STRUGGLE THE MOST TO SUPPORT RETIREES”
Part of he answer is for we baby-boomers to:
1. stay healthy
2. continue to save
3. stay at work beyond the mean retirement age, so we can …
4. continue to contribute to the tax and welfare system
It may not be attractive, but is pragmatic.
By Julian on Feb 5, 2017
Doomy glib projections of this sort have been doing the rounds for a decade plus. They never factor in the lack of substantial opportunities for those ostensibly tagged as the pensioner-supporters to actually perform that role. How does this top-heavy demographic get paid for when there isn’t much money to be made by much of the working-age population?
By Reimer on Feb 6, 2017
easy solution is to raise the cap for contributions to all earnings (from work and investments) under 500,000
By ron on Feb 8, 2017