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Pensions crisis

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The Pensions crisis is the potential result of insufficient resources being reserved for retirement income as life expectancies rise. As a larger share of the population become reliant on a smaller proportion of the economic active, public and state provision will fall. This is likely to considerably affect the financial prospects of retirees, many of whom are suspected of making insufficient private saving. Solutions to the pensions crisis could include higher taxes, later retirement, or the encouragement or reform of private saving, perhaps under compulsion. Some claim that the pensions crisis does not exist or is overstated, as pensioners in developed countries faced with population aging are often able to unlock considerable housing wealth and make returns from other investments or employment.

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