Netherlands to reform €1.8tn pension system amid legal and market impacts
The Netherlands is implementing a major overhaul of its €1.8 trillion pension system to improve sustainability and adapt to changing demographics and economic conditions.
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"Lessons in Social Security: What America Can Learn from This Country's System"
The Social Security program in the United States is facing a looming crisis, with more money being paid out to recipients than is coming in. The trust fund is projected to run out by 2033, resulting in a 23% cut in benefits for retirees. While politicians have failed to address the issue, Sweden offers a potential solution through partial privatization. By allowing individuals to invest a portion of their payroll taxes into individual pension accounts, Sweden has created a sustainable system that has performed well over the years. This approach could serve as a model for other countries facing similar challenges. It is crucial to make changes to Social Security now to avoid more severe consequences in the future.
"France's Workers Continue Protests Against Pension Reforms and Reforms in General"
French workers have been protesting for weeks over the government's plan to raise the retirement age to 64, with strikes causing road and railway closures. The country has a lower minimum retirement age than many of its European neighbors, and opponents of President Emmanuel Macron's pension overhaul say the advantages of French workers are hard-earned and lie at the heart of national identity. The new pension law, under review by the Constitutional Council, would gradually raise the minimum retirement age until 2030. Macron says the plan is necessary to balance the books as life expectancy rises.
China's Fertility Crisis Threatens Economic Growth.
China's population decline and ageing population are putting pressure on the country's welfare services and pension system. The birth rate has been slowing for years, and in 2022, the population fell for the first time in 60 years. China's working-age population is expected to fall by another 35 million over the next five years, and the number of retirees has already exceeded the number of contributors, leading to a drop in contributions to the pension fund since 2014. Beijing is trying to address these issues, but experts warn that China's demographic structure will be similar to Japan's in 2020 by 2040, and the country's economic growth will be worse than the US by 2031-2035.
China considers raising retirement age to address aging crisis.
China is planning to gradually raise its retirement age to address the challenges posed by its rapidly aging population. The retirement age will be delayed initially by a few months and then increased. The reform will allow people to choose when to retire according to their circumstances and conditions. China's National Health Commission expects the number of people aged 60 and over to rise from 280 million to more than 400 million by 2035. The current pension system, which relies on a shrinking active workforce to pay the pensions of a growing number of retirees, is unsustainable and needs to be reformed.