Global Pension Systems Can’t Support Aging Societies
Eighty-four percent of employees intend to continue working beyond their normal retirement age, according to a survey from Mercer’s Global Talent Trends, revealing that most workers aren’t confident in their financial preparation for later life. Despite many barriers to working in your later years, such as health issues and a lack of appropriate roles, workers have come to realize that they’ll need to rely on more than just a traditional pension.
On a global scale, pension systems are mostly ill-equipped to sufficiently support aging populations: The Mercer CFA Institute Global Pension Index shows that a combination of pension inadequacy, weak employee financial security, and a lack of employer attention to pension risks all contribute to the fragility of retirement savings and income. Several countries — Canada, Japan, Italy, the U.S., to name a few — registered medium or high risks in all three areas, and Mexico registered high in all three.
With people living longer, and birth rates across the globe declining, pension systems are under pressure to evolve. Additionally, without increased action from companies and better education on the subject, more workers could be supporting two generations in retirement.