> And this affects millions of people who are very pissed off and vocal about it.
I wonder how pissed these people would be if the government continued to pretend that everything is fine, did nothing, and in a few years the pension system simply crashes, due to being no longer feasible.
The current system in many european country relies on assumptions that were true in the 60s and 70s, when many of these systems basics were designed: Continuous population growth generating net positives in the pension funds, a certain life expectancy, and taxable incomes rising with economic power.
None of these assumptions hold true any more: Population growth has stalled or even reversed, people live a lot longer, and incomes stagnate despite decades of economic growth.
So the systems can either be adjusted, or they will stop functioning at some point. Even if the budgets are balanced at the moment, the factors listed above are not going to change in the other direction. Sooner or later, adjustments need to take into account the new reality.
I wonder how pissed these people would be if the government continued to pretend that everything is fine, did nothing, and in a few years the pension system simply crashes, due to being no longer feasible.
The current system in many european country relies on assumptions that were true in the 60s and 70s, when many of these systems basics were designed: Continuous population growth generating net positives in the pension funds, a certain life expectancy, and taxable incomes rising with economic power.
None of these assumptions hold true any more: Population growth has stalled or even reversed, people live a lot longer, and incomes stagnate despite decades of economic growth.
So the systems can either be adjusted, or they will stop functioning at some point. Even if the budgets are balanced at the moment, the factors listed above are not going to change in the other direction. Sooner or later, adjustments need to take into account the new reality.