Earlier quoted context omitted.
Not only pensions. Individuals cannot save any kind of money for retirement on their own if there will be no one to give to in exchange for services after retirement. We cannot save without children, and the only answer is more automation, or just tough it out until the hump is past and we can have a more stable population. Toughing it out is not easy: young people put off having children or avoid it altogether if th…
> young people put off having children or avoid it altogether if they feel they can't afford it. Well, people describe their behavior that way, and it may be true to an extent over very short timescales (like a short recession), but economic development empirically leads to decreased population growth overall; people don't have more kids because they are prosperous and less because they are not, but the reverse.
Economic growth ->
longer life expectancy / lower child mortality ->
population boom ->
people figure this out ->
baby bust ->
??? ->
stable population.
We're in the ??? part, and we may overshoot both sides of equilibrium for a long time for all I know. My sense is very much that fertility rates below replacement rate is due to young people feeling incapable of affording child rearing.