This is not our parent's retirement! A blog for pursuing encore careers, side hustles and gigs in retirement.
Thursday, June 13, 2019
International retirement crisis is looming - Hustler Daily Thumbs Up - June 12
Hello fellow Encore Hustlers
A major consideration for starting an encore hustle may hinge on demographics. The international trend is for increasing older populations that live longer and for lower birthrates. That means fewer younger workers contributing to state pension plans, like Social Security.
Read this trio of stories about the US, France and Japan to understand what is in store for seniors.
The US is facing its first real shortfall in Social Security contributes against payouts, which will result into dipping into the Social Security trust fund. If projections are correct the fund will be depleted by 2035 and this could result in reducing Social Security payments by 20% across the board at that point.
France, which has a retirement age of 62, is looking at ways to incentivize older workers to keep working and delay the start of receiving pension payments.
In Japan the retirement crisis is more extreme. Currently there are only two working age Japanese for every person 65 years or older. By 2035 this will become 1.3 working age persons for every senior. There will be simply no money available to support a pension system.
I could also find similar stories from almost every developed country.
Whether we like it not this trend will result in higher taxes, lower pension payments and raising the retirement age.
So unless you have been to set aside substantial savings to fund your retirement or have been so fortunate to have worked an employer with a pension program then are at the mercy of whatever the state can provide you.
Faced with this an encore hustle may not become a choice but a necessity.
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