Demography - A Global Trend and its Repercussions
The 7th billion member of the human race will be born in October 2011. This gives yet another impulse to have a look at demographic trends. Especially in industrialized countries fertility rates have decreased substantially, amongst others, due to more educated women. A parallel development has been increasing life-expectancy, due to improved hygiene and medical care. Consequently we will have far more elderly and fewer younger people in the future.
These developments have put severe pressure on pension systems worldwide and many countries have pursued reforms to regain their sustainability. Popular measures were the elimination of early retirement windows, and generally higher retirement ages, as well as actuarially fairer benefit rates. This typically led to lower benefit rates from the public pension pillar. Simultaneously, occupational and personal pension plans were pushed to fill the expected gap retirement income.
Even though most countries had the shift from the first to the second and third pillar in common, countries stand at very different stages in their reform process in terms of sustainability as well as their developments in the second and third pillar today. The financial crisis made the vulnerability of the capital funded second and third pillar very obvious and led to a discussion around adequate retirement income around the world.
Following the presentation participants will be able to raise questions and discuss related items. Snacks and refreshments will be provided.