Germany’s cabinet approved plans for a state-subsidized retirement savings account for youngsters, part of a broader push by Merz’s coalition to shore up a pension system under growing strain https://t.co/Hu0G42MtDN ...

Core Insights - Denmark will soon have the highest official retirement age in the world at 70 years, aligning with Libya, effective for those born after December 31, 1970, with gradual implementation until 2040 [3] - Prior to this change, Denmark was already among countries with the second-highest retirement age, alongside Australia, Greece, Iceland, Israel, Italy, and the Netherlands, while the U.S. and Spain followed with retirement ages of 66.7 and 66.5 years respectively [4] Group 1: Reasons for Increasing Retirement Ages - The increase in retirement ages globally is primarily driven by longer life expectancies, which are straining pension systems, a factor that has influenced Denmark's decision since 2006 [5] - Aging populations due to declining fertility rates have resulted in fewer young workers supporting a growing number of retirees, threatening the sustainability of pension systems [6] - Fiscal pressures from unbalanced budgets and inflation have compelled governments to raise retirement ages to manage public pension costs [7] Group 2: Comparative Retirement Ages - Libya holds the highest official retirement age at 70 years, with other countries like Australia, Greece, Iceland, Israel, Italy, the Netherlands, Spain, and the U.S. also having high retirement ages [9] - Countries with lower official retirement ages, such as India, Indonesia, and Turkey, typically have retirement ages set in the 50s, while Saudi Arabia has the lowest retirement age, allowing some workers to access full pension benefits as early as 47 [10]

Global Retirement Challenges - The US has 57 million Americans without savings or retirement plans [1] - Many countries face challenges in providing adequate retirement income due to lower interest rates and increasing life expectancy [2][3][4] - OECD reports 40% of elderly in Korea live on less than half of the median income, and just under 25% in the US [3] Dutch Pension System - The Netherlands has around €1600 billion (16000 亿欧元) in pension assets, equating to approximately 150% to 300% of its GDP [6] - Dutch pension assets account for 59% of all European pension funds, despite having only 4% of the population [6] - The Netherlands is transitioning from defined benefits to defined contribution to increase the sustainability of the fund [7] - The Dutch pension reform discussions started in the early 2000s and the shape of the current reform was decided around the start of the pandemic [8][9] Investment Strategies and Risk Management - The Dutch system allows pension asset managers to invest in higher risk and higher yield assets for younger workers [16] - The focus shifts from contributions to stable investment results as individuals near retirement [17][18] Policy and Consensus Building - The Dutch system emphasizes consensus building between employers, employees, and the government [19] - Political uncertainty around the pension reform ended after a failed vote in Parliament and a shift in government [11]

The life expectancy does not put a strain on pension system. But what has changed is over the past 20 years there was a regime of very low interest rates you know for lots of reasons. One of them was the financial crisis.A lot of it was the way that we managed our economies was to make sure that capital investment was low. That distorted a lot of decisions. But one of those things that it distorted is that the safe assets like government bonds didn't pay as much.>> The US is hardly alone in facing the comin ...

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