Pension/SS In Europe...

[rescueme]

I expect this to be "Porkied" early on, but it is an interesting read for those at/near retirement, of the challanges that other countries are facing.

Here's a quote from the article on USA Today:

The USA guarantees average workers around 39% of their wages in retirement; in Italy, that number had been nearly 65%, and in Greece, 95%. Those rates have recently been slashed to curtail deficit spending, in which Greece allots 12% of its GDP for pensions, and Italy, more than 14% -- the highest rate in the world according to OECD figures. By comparison, the USA spends 4.6% of its GDP on Social Security costs.

The full article at:
European pensions targeted

 

[ziggy29]

In most of the "industrialized" world, especially where there was a post-WW2 "baby boom" and unprecedented economic strength, programs were put into place without seeming to think about whether they were sustainable in the long term and not just seemingly "possible" because of an unusual economic and demographic blip.

That leaves us today with very unpleasant decisions to make.

 

[packrat44]

When I read that article earlier today it was easy to see how some countries are now in trouble. Hard to believe how anyone could think paying 95% of ones working wage in retirement is sustainable. I had seen these figures before for about 10 european countries. When I saw the one for Greece I had to go back and re-read. I thought it was in error when it listed 95%. (In the other article, it also stated that with the tax breaks the 95% was equal to about 115% of pre-retirement income.)

 

[pb4uski]

Heck, many private pension plans don't pay 95% of pay. Imagine what the funding requirement for that would be.

 

[meierlde]

IN the case of Greece few consider that they had a communinst revolt in the country until 1949. So to make more of the populace be quiet it was necessary to make "concessions? to the people. France and Italy had large communist parties and a piece of the social scheme was to convince people in the 1950s that they would be better off in the current system than a soviet style system. (Recall that in the 1950s it was commonly thought that the soviets would trimump)

 

[Lazarus]

My private company pension is about 25% of my working income. At 55. Glad to get it. I don't see how the government pensions are sustainable.

 

[haha]

I don't see how the government pensions are sustainable.

Easy, private companies do not have taxing power, or a group of employees that will get out the vote rain or shine reliably for any administration that will bribe them handsomely.

I would carry dead voters to the polls on my back uphill in the rain if my government pension and rich benefits might be in the balance.

Calling Boss Tweed...

Ha

 

[Lazarus]

Yes, but there will come a reckoning day. I think voters will eventually wake up. Maybe I am hopelessly optimistic.