The World’s First Pension Crisis
By Simon Black Sovereign Man
March 31, 2017
*** begin quote ***
In the late in the 5th century BC, the government of ancient Rome came up with a new idea that has lasted for thousands of years.
I’m not talking about their roads, republican form of government, or water sanitation.
Their bold idea was to start paying retirement benefits to Roman soldiers.
*** and ***
So just as the ancient Romans invented the first pensions, they also invented the first pension crisis. It wouldn’t be the last.
Most major governments find themselves in a similar position today.
According to a 2016 report from Citibank entitled “The Coming Pension Crisis,” the 35 developed nations which comprise the OECD (including the US, Canada, Japan, most of Europe, etc.) have pension shortfalls totaling $78 TRILLION.
To put this in context, $78 trillion is more than the size of the entire world economy.
*** end quote ***
Nothing like being a Gloomy Gus on a nice sunny day, but the nice thing about being a retired fat old white guy injineer who is a poor old senior citizen on a fixed income, I have the perspective to look back and forward. Past is prologue.
I used to counsel my fat old white guys in job search. Part of that advice was to conduct the Sunday morning “board meeting”. Humorously, the jobseeker has to wear many hats. When I was one, I learned the trick at the DBM “turkey farm” of “wearing many hats”. So I, as the CEO, would turn to myself, as the CFO, and say: “How are revenue and expenses?”. Then the CFO would report. SO to with the CIO role, HR role, Sales Manager, Marketing Manager, etc. etc. At one time I think I had six or seven distinct “roles” in my job search.
One of my turkeys was so dense, I had to have him make paper hats with titles on them.
All that being said, there is a “retirement crisis” ahead. Probably not for me, but the younger you are the more positive I’m that you will hit it. “Pension shortfalls” equal to the world’s economy?
I can hear you say, but I don’t have a pension. But as taxpayers, you have to pay for public pensions, social security, and other “entitlements”. That’s even worse.
I hope that all you youngsters have a plan for when you’re my age.
p.s., sorry my generation has left you a mess to clean up.
# – # – # – # – #