Getting Greyer – and Poorer Too?

The world population is aging, due to the plummeting birthrates and increasing lifespans in both rich and poor countries – and retirement systems have been slow to adjust. In the US and Europe, pay-as-you-go pension plans are at risk, as the ratio of workers to retirees worsens: In Italy, for example, retirees will outnumber workers before 2030. And as the economy sours, private savings look to be threatened as well. To address the current problems, last week the World Bank updated its 1994 report, "Averting the Old Age Crisis," amending its "pillars" of healthy retirement programs. As a larger aging population competes for fewer resources, more fundamental change will be in order. Otherwise, The Economist warns, "there will not be enough to go around, no matter how ably it is distributed." – YaleGlobal