Proposal:First an introduction to the main problem… The main problem is aging population that affected some economies and it will affect more in the near future. Write both positive aspect of population aging shortly a then derived he negative consequences of ageing for a society and the economy. Please depict the Japan and USA Case much more..Second please cite some sources (some I will share with you both in Japan and USA) about the sustainability of the pension system which is PAY AS YOU GO (Japan), which means the current working population contribution is used for the current retirees. Which is believed to be not sustainable in the near future due to higher number of retiree and less contribution from the current working age population which is continues declining.
And the shift form Defined Benefits (DB) to Defined Contribution) put American employees to be exposed to the risk. Please cite some sources. (USA)On the other hand due to higher life expectancy people are tend to live longer than the past, and this higher life expectancy create a longevity risks which people will outlive their savings …. refer to my personal statements attached.So, in that case when the pension systems are considered to be unsustainable what are the possible solution? How people should have a secure retirement and to better manage longevity risks?
There could be many strategies and policies. However one possible way to have financially sound retirement and mange longevity risks is to delay the retirement..Please cite some sources about the delay retirement decisions if available.In the past and now financial literacy is proven to be an effective tool in better retirement planning. …..cite sources about the effects of financial literacy and retirement planning.However now the question is Do individuals and families possess the necessary financial literacy to recognize and address retirement risks? Are they equipped with sufficient financial education to effectively manage their retirement planning?
