Lachman: Pension | It’s Impact on the World Economy


Nations of the world feel an obligation and responsibility to plan for and enable financial security for its elderly citizens and retirees. This is a lofty goal, and its objective is not easily attainable due to new economic realities. Factors such as recessions, an increasingly longer life span resulting in a large aging population which results in the need to seek additional sources of funding, and low returns on pension fund investments, will be discussed. The paper also analyzes the various contemporary global pension systems structures as well as the performance outlook of these systems. While stating the necessary need for reform, the paper also identifies some proposed solutions to achieve this reform. Among the solutions discussed are, long term investments in infrastructure projects, increasing employment and investment in green growth projects to address the fiscal unpredictability in today’s global, fluctuating economy.


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