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Denmark to raise retirement age to 70

telegraph.co.uk

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Re: Denmark to raise retirement age to 70

#41

Post by JackYoustra »

constantcrying wrote: post #28
dtgm92 wrote: post #9

This is because of their low birth rate primarily right? I think the system has failed at this point, when you are expected to work that long.

No. It is about how the system is funded. If pensions were funded by actual retirement accounts, where employees invested money into some state fund and have it paid out for retirement this would be entirely unproblematic. But the pension system in many EU countries is set up in a way in which tax contributions now finance pensions now . This can only work with a steadily growing economy which continually generates m…

Chile had this and, while technocratically sound, was so unpopular it led to a new constitution.

Re: Denmark to raise retirement age to 70

#42

Post by constantcrying »

CubsFan1060 wrote: post #23
tossandthrow wrote: post #11

Earlier quoted context omitted.

It is. And this is the case in all western countries. It is just being realized in different ways. Fundamentalle there are 3 ways to cope 1. reduce pensions 2. Raise taxes 3. Decrease amount of benefit receivers. Denmark choose number 3

Wouldn't the fourth way be via increasing either birth rate or immigration?

You have to grow your economy at a rate that allows you to pay for the additional pensioners.

Birthrates seem very hard to change and even if change would happen it is much too slow.

Germany did the experiment on immigration and has not seen GDP growth for half a decade. There the system is failing far worse in some ways, but in Germany employees are paying directly for the pension plans, so the state just raises the employee contributions.

Re: Denmark to raise retirement age to 70

#43

Post by mikewarot »

I think that the long term consequences of cases of CFS/ME that are induced by Covid (and thus Long Covid) are going to take out a large amount of the top of the population pyramid well before their time, myself included.

The increased medical costs as we go, however, might actually make it worse, faster.

Re: Denmark to raise retirement age to 70

#44

Post by varelse »

mr_toad wrote: post #36
CubsFan1060 wrote: post #23

Earlier quoted context omitted.

Wouldn't the fourth way be via increasing either birth rate or immigration?

The people who would actually benefit from that the most are the people who are too old to have children and are strongly opposed to immigration.

[dead]

Re: Denmark to raise retirement age to 70

#45

Post by holsta »

tossandthrow wrote: post #5
bluefirebrand wrote: post #3

Earlier quoted context omitted.

I'm not sure this really changes the information? Ok, so if you're near retirement now you're fine But if you're younger, you can look forward to not retiring until 70, as if the younger generation hasn't been shit on enough Amazing stuff. One last ladder for the older generation to pull up behind them before they die, I guess

In all fairness. the housing market in Denmark is approachable - you can get houses near major cities for usd 80k. Social security, you can go unemployed for years and still pay your bills. Government provided education with stipend - having masters degrees are common. And the economy is strong. Most Danes understand that this is inevitable - the big issue is that the politicians have given themselves more favorable…

> you can get houses near major cities for usd 80k.

There are 53706 homes for sale today. 2784 of those are actual homes, not empty lots, costing less than 600K DKK.

I would not expect to live a healthy, comfortable life in most homes at that price range. Draft, mold, poor insulation and high energy bills.

Re: Denmark to raise retirement age to 70

#46

Post by cbeach »

CubsFan1060 wrote: post #23
tossandthrow wrote: post #11

Earlier quoted context omitted.

It is. And this is the case in all western countries. It is just being realized in different ways. Fundamentalle there are 3 ways to cope 1. reduce pensions 2. Raise taxes 3. Decrease amount of benefit receivers. Denmark choose number 3

Wouldn't the fourth way be via increasing either birth rate or immigration?

Raising immigration rates to solve an aging population is a Ponzi solution.

Re: Denmark to raise retirement age to 70

#47

Post by tossandthrow »

constantcrying wrote: post #28
dtgm92 wrote: post #9

This is because of their low birth rate primarily right? I think the system has failed at this point, when you are expected to work that long.

No. It is about how the system is funded. If pensions were funded by actual retirement accounts, where employees invested money into some state fund and have it paid out for retirement this would be entirely unproblematic. But the pension system in many EU countries is set up in a way in which tax contributions now finance pensions now . This can only work with a steadily growing economy which continually generates m…

This is about public pensions.

Denmark has private pensions like the 401k system in the US.

People can start tapping into these up to 5 years before they are 70.

In reality most people will go down in time and partially tap into private pensions and saving long before they turn 70.

This is opposed to other European countries, like Germany, that does not have these private pensions, but only retirement insurance.

Re: Denmark to raise retirement age to 70

#48

Post by SoftTalker »

CubsFan1060 wrote: post #23
tossandthrow wrote: post #11

Earlier quoted context omitted.

It is. And this is the case in all western countries. It is just being realized in different ways. Fundamentalle there are 3 ways to cope 1. reduce pensions 2. Raise taxes 3. Decrease amount of benefit receivers. Denmark choose number 3

Wouldn't the fourth way be via increasing either birth rate or immigration?

[flagged]

Re: Denmark to raise retirement age to 70

#49

Post by impossiblefork »

CubsFan1060 wrote: post #23
tossandthrow wrote: post #11

Earlier quoted context omitted.

It is. And this is the case in all western countries. It is just being realized in different ways. Fundamentalle there are 3 ways to cope 1. reduce pensions 2. Raise taxes 3. Decrease amount of benefit receivers. Denmark choose number 3

Wouldn't the fourth way be via increasing either birth rate or immigration?

Improve the birth rate, yes, but you probably can't do that unless you deal with the resource situation as well.

So you can reduce pensions, improve the situation for the youth, take efforts to get an improved birth rate, making use of the resources lost to pensioners, and then maybe you can raise the pension later on once you realize things are stable.

Re: Denmark to raise retirement age to 70

#50

Post by [deleted] »

lostlogin wrote: post #30
tossandthrow wrote: post #11

Earlier quoted context omitted.

It is. And this is the case in all western countries. It is just being realized in different ways. Fundamentalle there are 3 ways to cope 1. reduce pensions 2. Raise taxes 3. Decrease amount of benefit receivers. Denmark choose number 3

2 has some options. Increase the number of (young) immigrants. Increase the birthrate (has anywhere managed this?).

[deleted]
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