How will this equation be solved in the future? Will young people be made to pay for the health care and assisted living of the elderly while the elderly sit on a large amount of assets? Retirees own 39% of household assets (in 2016, a rapidly growing figure) and yet the general assumption is that almost everything should be paid for by tax money. Young people currently pay for their pensions (even part of their occupational pensions) as well as health and care services. Now that the beginning of many young people’s careers has also been squandered due to the economic situation, the future is indeed quite rosy for these generations at the beginning of their careers, if nothing changes.
Retirees have been able to grow their own assets with low tax rates, receive more occupational pension than they have accumulated, retired early, and after this, their retirement days should still be funded by the state. Fair?
It’s also good to note that all significant cutbacks were always made only after the large age groups had passed a milestone, e.g., increases in the retirement age.