Europe's median age is at about 38 years, which means that the bulk of Europeans are around this age. With average continental population growth rate of below 2 percent, Unfortunately, the population replacement rate is at 2.1 percent. Thus, Europe does not give birth to a sufficient number of babies that will replace those who will eventually pass away. Europe is shrinking and aging, FAST.
Meanwhile, Social Security is a novel idea that was created in the early twentieth century when many citizens were in need of financial assistance but the government had no money to dole out. Instead, the government deducted a small amount off of worker's incomes and, in turn, redistributed it to those in need. On its inception, the country believed that the Social Security system is one of the most ingenious financial inventions of all time.
How do they relate?
Because of an ageing population, there will be less working people who will have to pay for more retirees in the near future. Since social security contributions are the primary sources of retiree pensions, every retiree will have receive less than what their predecessors had. This translates to a lower quality of living, as every country's cost of living index exhibits a perpetually upward trend.
This is further exacerbated by current fiscal policies regarding social security. Present policy stipulates that at times when social security contributions exceed what's required by the retired population, the surplus is lent to the government, payable when the need arises through reallocation of internal revenue or foreign credit. This poses a serious problem in future, as the national economy would have to make the most out of an older (and thus, less productive) workforce.
Hence, it seems just a few mind-numbing decades, European Social Security can pass off as a legitimate oxymoron. Something has to be done and whatever it is, it should be something decisive.
When taking a break from writing, Tina spends time in improving her home. She uses 100 percent natural diatomaceous earth to rid her home of bugs. She also grows ornamentals plants like double impatiens to make her home lovelier than ever.
Article Source:http://EzineArticles.com/?expertView the Original article
No comments:
Post a Comment