"The assumption that state-backed pensions are permanent and guaranteed is increasingly fragile. They depend on demographics, economics and political choices, all of which are changing. According to Congruent Solutions, by 2050, there are projected to be 52 people aged 65 and over for every 100 people of working age, up from 33 in 2025 - meaning fewer contributors will be supporting more retirees."
"At the same time, the working-age population across OECD countries is expected to decline significantly over the coming decades, while public debt and competing government spending continue to rise. As a child growing up in the 1990s, I witnessed the collapse of a pension system firsthand, when many older people who had worked their entire lives felt they had lost what they were promised."
State-backed pensions became normalized but are not guaranteed; they rely on demographic, economic and political conditions that are changing. By 2050 there may be roughly 52 people aged 65+ for every 100 working-age people, increasing the burden on contributors. The working-age population across OECD countries is expected to decline while public debt and competing government spending rise. Many pension plans show large funding shortfalls, with market-based estimates indicating around $5.1 trillion of unfunded liabilities and numerous plans less than 50% funded. Long-term security can be built by owning income streams that function like pensions, based on predictable demand.
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