Future of retirement funds
Every social system is comprised of numerous subsystems, funds, policies and laws. They help us regulate almost every aspect of life, allowing people to raise their families without thinking about trivial things. Governments of the world are trying to be socially friendly, constantly striving to improve their health care, pension system and education. When first retirement funds were established, they were meant to be used as a way to give people security. After entire life of working, individuals wish to take a break and enjoy rest of their existence. Being unable to earn money, they need to rely on someone else to pay their bills, medicines and food.
Retirement funds were made based on one simple premise. Working people are going to pay bills for elderly citizens. Theoretically, this system will continue to infinity. As old generations retire, young individuals will finish their education and start making money to compensate for their absence. As it usually turns out, things didn’t go accordingly.
Crisis has revealed numerous flaws, not only of retirement system, but other social policies as well. It turns out that even the slightest disturbance of cash flow can endanger entire system that was being created for years and years. Public finances are not only based on workers who are giving money for maintenance of social system. There are other things as well that are part of budget. Although retirement funds are separated, they are still influenced by other macroeconomic events. If there is budget deficit, government needs to revise its policies including retirement funds. Recently, various countries started looking for a way to eliminate public pensions. However, it is a very hard task because it requires a lot of social system restructuring.
There is another issue with retirement funds which is especially common in western countries. Capitalistic system is really intense forcing people to work a lot, giving them minimal reprise. Our generation was taught that we need to educate ourselves in order to accomplish big things in life. But, by the time we do so, half of our life passes. Then, we need to return student loans and most of the companies simply love exploiting young workers given that they are more energetic. As a result, people do not have time for creating family. Most of us start contemplating family at age of thirty. Furthermore, it has seen as a luxury and nuisance to have more than one child. All of this leads to lover birth rate which also affects pension funds. Reduced workforce needs to work more for increased number of retired people.
One of the best solutions is private insurance funds. People are able to make their own retirement and to start depositing funds in one of these companies. Another interesting option that appeared recently is commodity retirement account. According to California Gold Buyers review, commodities will be the future of retirement funds. They are regarded as safe resources, allowing you to benefit from constantly increasing prices of commodities while protecting yourself from market instability.