Just as governments struggle to simultaneously address obesity and hunger, the world’s population continues to grow ... and shrink. The United Nations estimates that between 2015 and 2050 49 countries will experience population declines even as the total world population reaches 9.77 billion. Moreover, in all but two countries the ratio of old population to working-age population will increase by 2050, and an estimated 135 countries will experience fertility rates below replacement rates. While demographic changes usher in consequences for businesses and governments alike, in today’s Viz of the Day we explore the implications for government-supported pension programs and related policies. The ratio of retired persons to labor force determines the pressure on pension funds and government budgets. If the contributions to pension funds collected from employees are insufficient to pay benefits to the retired, the pension fund goes into deficit, a deficit generally financed by the government.
A prime example of government efforts to address shortfalls in pension financing is unfolding now in Russia. On June 14, Moscow proposed gradually increasing the official retirement age from 55 to 63 for women by 2034 and from 60 to 65 for men by 2028, adding approximately 10 million workers to the pension contribution base. The draft plan has already been introduced for consideration by the State Duma and the first reading is planned for July.
While in the long run, increasing the size of the labor force by adjusting the official retirement age may stabilize pension benefits and even contribute to Russian economic growth, the Russian public is skeptical and protests have broken out around the country. Approximately 50 applications for public protests were submitted in different regions of Russia in the days after the planned reforms were made public, with one taking place as recently as June 25 in Irkutsk, according to Vedomosti.
Live data and insights on Coronavirus around the world, including detailed statistics for the US, EU, and China — confirmed and recovered cases, deaths, alternative data on economic activities, customer behavior, supply chains, and more.
Gen-Z has overtaken Millennials by nearly 4 million to become the largest generation in the United States. Baby Boomers are the third-largest generation with the population of 69 million persons in 2020. With a current population of around 86 million, the Gen-Z generation is expected to grow to 88 million over the next 20 years because of migration, according to the United Nations' latest World Population Prospects. The boundaries that define generations are not universally agreed, and yet these boundaries carry important implications in business and government. The size,...
(December 2022) You sometimes hear, “Oh, to be young,” and there is merit to that sentiment depending on where you live out your retirement years. Retirement security is not an issue weighing on individuals alone. It is among the top social issues globally because of a simple fact: the world’s population is getting older. According to the World Bank, the share of people aged 65 and older will double by 2050 to reach 1.6 billion. Societies must grapple with how to ensure people have the resources and services to support themselves through retirement. The Natixis Global Retirement...
People are living longer and, in some parts of the world, healthier lives. This represents one of the crowning achievements of the last century but also a significant challenge. Longer lives must be planned for. Societal aging may affect economic growth and many other issues, including the sustainability of families, the ability of states and communities to provide resources for older citizens, and international relations. Preparing financially for longer lives and finding ways to reduce aging-related disability should become national and global priorities. Experience shows that...
The population of China currently exceeds the population of India by approximately 70 million, according to estimates from the United Nations. The UN's World Population Prospects report puts the population of China at 1.38 billion, compared to 1.31 billion for India. Other sources' estimates of current population range from 1.37 to 1.40 billion for China and from 1.28 to 1.31 billion for India. Just as current population estimates differ, so do forecasts as to when the difference in the population between the two countries will level off. According to the United Nations',...
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