The world’s pension systems are confronting a demographic crisis as longer lifespans and dwindling birth rates threaten to stretch retirement finances, raising questions about their ability to sustain payouts for future generations. Pension offerings generally fall into two categories: defined-benefit plans, which promise retirees a predetermined income, and defined-contribution plans, where payouts depend on accumulated savings and investment returns. Ageing poses different challenges for the two systems: defined-benefit schemes face mounting liabilities as retirees live longer, while defined-contribution members risk outliving their savings, placing greater pressure on funds’ investment performance. What is your advise on the working class who are relying on pension after retirement ?
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