The problem with living longer for state pensions
With the world still in a financial crisis and the population expanding to over 7 billion and sometimes living much longer, never have governments been faced with so much pressure to come up with a solution to this crippling industrial issue.
When we take different states into account the Mexicans have some of the highest retirement ages at approximately 73 and at the other end of the scale we have got the French retiring noticeably earlier at approximately 59 years old. The truth of the matter is for many is somewhere in between.
Age is often quoted as when folk say they’d like to retire the genuine answer should be at what revenue!
Now we live in real life and having the ability to retire early isn’t invariably a realistic choice conditional on career security and capability to put enough of their income away for their old age. For most that do plan to retire early their incomes will be decided by whether they have created a massive enough funds or sold a company giving the monies needed.
Now there may be general savings and investments and possibly revenue generated thru property investments. Expats could be employing a QROPS, some may have a mixture of all including the state pension and/or any private pension plans. Now for those in the second group the real question or issue is whether that these streams of income will be in a position to fund their retirement, not even considering having the ability to retire early.
Because of the constantly rising age of the populous generally, the states from across the world are finding their allowance systems under constantly increasing strain. There are measurements in place to test a nations public and private pensions adequacy, integrity and sustainability. Holland fares the best with workers belonging to occupational pension schemes with the state pension providing a fixed rate for all.
America is sat in the lower 3rd due to housing price issues and the almost uncontrollable countrywide debt. China sits at the base of the pile with a decreasing birth rate and a standard age up by 27 years from the 1960′s.
Herein lies the problem the price of living has forced many families to have less kids which in effect produce less employees able to contribute to the state and with an old population we’ve found ourselves in an extremely tough situation to clear up.
If like many UK pension holders you’ve decided to move abroad here two helpful resources for QROPS pension information and QROPS generally.