As populations in Europe and Japan age, the demographic pyramid is rapidly inverting, and a clash of generations is emerging, with the middle-aged and elderly protecting their interests at the expense of the younger and future generations. Labor mobility can help, but what will happen when opportunities abroad are depleted as well?
PRINCETON – Throughout the industrialized world, governments are rushing to hand out money to the elderly. Germany’s government has not only reversed an increase in the retirement age intended to make pensions more affordable; it has recently announced a 5% increase in benefits, the largest such rise since 1993 (when, unlike today, Germany was actually experiencing inflation). Poland’s Law and Justice government, in one of its first moves after taking power last year, decreased the pension age and increased payments.
PRINCETON – Throughout the industrialized world, governments are rushing to hand out money to the elderly. Germany’s government has not only reversed an increase in the retirement age intended to make pensions more affordable; it has recently announced a 5% increase in benefits, the largest such rise since 1993 (when, unlike today, Germany was actually experiencing inflation). Poland’s Law and Justice government, in one of its first moves after taking power last year, decreased the pension age and increased payments.