Pension System Reform: Factors That Have Driven and Necessitated the Pension Dynamics Globally

Abstract

Technological and medical advancement globally in recent times has led to an increase in the life expectancy and research shows that there will be a further increase in the coming years. And increase in the life expectancy ratio poses a threat to the pension systems of an economy. The world has experience a global pension system crisis due to the increasing aging populations hence a high old dependency ratio. The global pension systems was generated by factors such as increase in older population, inadequate savings for retirement in old age and increase in unfunded pension liabilities. There have been moves by the various governments to adopt measures to mitigate the rise in the pension costs within their countries. This paper discusses in details the factors that have driven and necessitated the pension system reform dynamics at the global stage.

Keywords: elderly poverty, pension system reform, old age crisis