Pour money into pensions or risk a poor old age, IMF tells millennials
Traditional state pensions are unlikely to exist in their current form in the decades ahead, so young workers need to seize the initiative now and start saving for their old age, the International Monetary Fund has warned.
Aging populations mean government resources – the taxes paid by workers – cannot stretch indefinitely to pay for substantial incomes for retirees into old age.
As a result individuals will have to take more responsibility for their own income into old age, IMF economist Mauricio Soto said in the institution’s quarterly Finance and Development publication.
“For the millennial generation coming of working age now, the prospect is that public pensions won’t provide as large a safety net as they did to earlier generations. As a result, millennials should take steps to supplement their retirement income,” he said.
Full Content: Telegraph
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