Is crisis in the public pension system?. I do not know if this is the situation today. What seems abundantly clear is that the system is experiencing problems and needed adjustments to ensure its future. As we all know, the current pattern of public pensions is based on a "delivery system", which is balanced by a principle of intergenerational solidarity, so that the contributions of young people, can sustain the payment pension for the elderly. But today we are faced with two serious problems that complicate their sustainability:
one hand the economic crisis and high unemployment that we have caused a significant reduction in the number of active workers to be finance system and a loss in value of financial assets accumulated, because of their great loss of profitability.
On the other hand we have a problem with demographics. As a result of medical advances that have life expectancy of the population is higher, and likely will grow even more with new scientific discoveries. At this time, according to the latest known mortality tables, life expectancy for men is 78.3 years and for women 84.8. (Almost double what we had for 100 years).
When designing the public pension system and even when it generated the Toledo Pact, life expectancy was shorter, the percentage of population much higher and accumulated financial assets obtained a high returns being in a growing economic process. In addition, we incorporábamos to work at younger ages and our working lives and therefore periods of contribution, reached 40 or even 50 years (now the young people enter the working world ten years later).
is unquestionable, therefore, that the system is unbalanced, because we have retirees who live longer and fewer young contributors are those who sustain the system. Therefore, it is absolutely necessary to a serious debate on public pensions because, if nothing is done, the imbalance will grow. On the other hand, you can not hide the fact that the system itself is called solidarity is much more than it seems unsupportive.
should review the Toledo Pact in order to maintain the necessary balance system. Failure to do this as well soon, we will leave our children a bad inheritance.
0 comments:
Post a Comment