EU Countries Considering Pension Cuts

In a long string of events that are “shaky” (Yes, I’m looking at you, Greece), as its population increasingly ages, European Union officials are calling pensions “unsustainable.”

It’s no secret that many populations within the EU are aging, or downright “dying off.” At the present, there is an average of four workers per person over the age of 65. Not bad for now, but by 2060, that ratio is expected to get cut with it, and pensions are going with it.

“The current situation is simply not sustainable, “said EU Employment Commissioner Laszlo Andor, “The choice we face is poorer pensioners, higher pension contributions or more people working more and longer.”

According to a BBC article, as long as pension legislation is not changed, the EU powerhouse economies will be faced with increased pension payments – and therefore, the system must be changed. As the population ages, governments will be forced to increase the amount of money they pump into pension payments. There simply will be more retired citizens that need their payout.

Never thought you’d see the day where European countries try to take benefits away from its citizens? Reality just might be about to hit home.

One of the solutions? Make people work longer. Yep, the EU is considering pushing the retirement age back to 70 instead of 65. However, this situation is hitting Europe at a time of crippling budget cuts. Might the era of entitlement be replaced by thinner budgets? It will have to if the EU is to increase its budget sustainability.

This situation is tied to deficit spending in America. In my opinion, this is the same trend that is occurring in America, or rather, the trend that should be occurring. If budget cuts do take place, the EU governments will be one step ahead of the American Congress, who seems bent on spending every penny that isn’t nailed down.

I applaud the EU for taking population trends and unsustainable budgeting into consideration – that is, if the countries’ governments take them seriously.

However, this is just my own opinion. What do you think? Be sure to comment using the link below this post.

Read the original BBC article here: http://www.bbc.co.uk/news/10545280

Chris Buchheit

Chris Buchheit

Chris Buchheit was born under the hot Floridian sun during some year in the 1980s. There he studied school matters until moving to North Carolina in 1999. Possibly due to the fact that his mom had enough of him being inside all the time, he quickly got involved in community affairs via the Boy Scouts of America, where he learned the values of citizenship, morality, duty to God and country, and that the biggest kids get to boss around the smaller ones. Chris attained the rank of Eagle Scout in 2004, and still values the rank as one of his proudest achievements. Beginning in 2006, Chris began attending the University of North Carolina at Chapel Hill, where he quickly learned the value of basketball and poplar trees. Since attending UNC, Chris has been double majoring in Asian Studies, with a concentration in Chinese, and Political Science. When he isn’t slaving over his honors thesis, looking up a bunch of Chinese Characters, volunteering, or mindlessly browsing the same websites over and over, Chris enjoys writing short stories and novels. Much to his roommates’ annoyance, he also spends his free time learning to play the guitar. Above all else, though, Chris values God, his family, and his friends. For the future, Chris plans to apply to Georgetown to further his studies in Political Science, hopefully with a concentration on China. Pending acceptance into Georgetown, Chris would like to study while gaining professional experience in a government job in Washington DC.
Chris Buchheit

Latest posts by Chris Buchheit (see all)