today, he was also the one who let the 1st candle. now that is of course highly significant as well as a new speeds. he also said that he wants to make it clear that he's standing by the jewish communities side of next, a business special in the future of retirement and pensions. i'm told me a lot of exposure to the secret slide. we discovered more adventures and 360 degrees and explore fascinating. both heritage selling dw world heritage 360. now, the taste of we have a problem that was in the us middle class income has fairly risen in the last 20 to 30 years 6. perhaps the best way to have the same time that

keeps rising. everything has to be subordinated to paying these 300 trillion the debt trap. december 9th, on d. w. the, it's the slowest moving financial crisis of our time. it's igniting tensions, and threatening to up in the way our society's are organized. the retirement crisis hold on. i know what you're thinking, but it's not as boring as it sounds. it explosive. it's leading to some outrages, suggestions, and causing fury. the problem is a retirement crisis in that there are politicians and business organizations that wants to take away a retirement from or course. so the crisis is actually an increase in cost of our

pension systems are rolling towards a breaking points, and no $1.00 seems to know how to fix this. around the world countries retirement budgets are going bust. governments are steering towards a huge retirement savings gap in the coming decades amounting to a total of $400.00 trillion dollars. and the root cause demographic decline is the fact that the birthday parties will soon become a rigorous sides. the funeral. industrialized countries are being as hard as the old age dependency ratio and rich countries as soaring. that's the percentage of retirees compared to people of working age. so more economic burden is falling on a ranking group of working adults. it's an issue that will eventually catch up with the rest of the world as well. in 20196 and 66 people globally where age 65 and over 2050, it will be 11 and 66. and this video,

we will look at how the crisis will limits our life after work. we will speak to those warren that the social contract will be rewritten, and we will ask, why can government find a solution that's all coming up on business beyond the 1st things 1st. how can we even get to retire in the 1st place? there was a point where retirement did not exist when you either worked until you died or you worked until you could no longer work. and then your family took care of you. and if your family couldn't take care of you, you went to the poor house at the end of the 19th century, 2 countries changed the status, quote, new zealand and germany. they formulated the concept of retirement separately and the opposite ends of the world. but almost simultaneously, new zealand, $1898.00, introduced a text, sometimes flat rate non contributing pension for everybody age 65.

why did they do that? even then, it wasn't competitive international, the economy. and the purpose of pensions was to stop on to work cuz during around the factory fall in the farm yards, reducing the productivity of younger workers. it's me coming into your office and saying, can you show me how to switch on my computer? in germany also fun? bismark, the conservative minister, president of prussia, was also determined to boost the efficiency. perhaps even more so. he was under pressure from a socialist opposition to do better by the people. now, if the purpose is to get rid of date would, and then you say, retirement is mandatory. it's completes. you hit 65, you're useless, you're out of here. but we pay you a pension for political and ethical grants. in $1881.00 bismark argued for

a state finance pension and this ice tax. at the end of the decade, retirements became a reality for germans, age 70, and up. if they made it to that age, and that was a big if, because life expectancy it was so well below the retirement age at the time. meaning most people still worked until they died. since and to think so. people are living longer healthy lives, which means they can work longer. but we've become rich as societies, so we can afford to give people appear to pleasure at the end of their working life . but that means the purpose of pensions has changed. it's no longer a the vice but weeding of that would. it is a social invention for the binding adult is between working years or time. years during the 20th century, more and more people began to enjoy life after work and industrialized economies. pensions became one of the cornerstones of the welfare state symbol of solidarity and the pillar of the social contract. ready now pay as you go,

pension systems are the norm, and though we cd, which is a club of rich countries with an average retirement age of $64.00, pay as you go means today's workers are paying into the system with a portion of their income at the same time, today's retirees are drawing out of it. the goals that citizens eventually get back, what they put in. it's a system that has worked until now. the idea, so, you know, everybody during their working lives pace and, and everybody during their retirement years takes out. but it also means that when you have more older people who are drawing from the systems for more years, if you end up with a shortfall and that shortfall is mushroom and we are steering towards the retirement funding crisis. but experts say it didn't have to be this way. so population aging is a fact, but it doesn't need to be a crisis. it becomes a crisis if policy makers don't respond to it in

a skillful way. if they continue to, you know, put off and put off and put all the fixes that are needed to make sure that these pension systems on which all of us hope to rely are going to be really robust when we get there. so i think we're having a conversation today because of the ability to do, it's not because of a problem that was unforeseen, but what options are left for countries to defuse the demographic time volume? that financial pressure means that there are short falls and pension systems. and there's basically only 2 ways to solve them. you increase revenues for you decrease spending or some combination of those to one. you can pay lower monthly, pensions, $2.00 or 2. you can pay the same monthly pension, but started the late to age, which is another way of cutting benefits,

is our populations are growing faster than anywhere else in the world. elderly people already have to work longer. governments would fail to prevent holes in our pension system. at the same time, we will likely continue to live even longer. that means it will fall on people to take personal responsibility for their post work lives with their own savings. and that can become a problem because around the world, we haven't made the types of financial decisions that will help our future cells. and most wealthy countries, the average 65 year old has saved enough to keep up their quality of life until the early seventies. but most are expected to live until their mid eighties are longer, and that's trillions of dollars and missing savings. how her feels research concentrates on the psychology of long term decision making and why we find it difficult used to be the case much longer ago that we didn't need to think that deeply about the very long term future when life expectancy was 2728 whatever it

may be, there was no need to plan for such a very far period of time. now, of course we've gotta think it in a much broader terms and think about our very far cells. and the problem there is that, you know, as i another people i found in some ways people don't necessarily think of their distance selves as if they are sort of just natural extensions of who they are. now . instead, how found that our brain sees our future self kind of like a stranger. the brain not only can tell what's me and what's not me, but it also says, hey my future self. and that person seems more like other people on some narrow level to find out how people can become better savers. he investigated how can we make people feel more connected to their future self. and so part of the work that i've been doing is to trying to inject that emotional bond inject that sense of

responsibility for our future selves in much the same way that we possess that feeling for our kids are our loved ones or for our aging parents. and in order to do that, what we ended up introducing was 3 d age progressed images to people in 2011. how it conducted an experiment, where he created a virtual reality in which participants could meet their older selves as avatars. even if the avatars didn't look as life like in 2011 as they were today and worked, participants wanted to save twice as much for retirement as the control group. a fostering m to see for a future cells can help us make better decisions. but it's impossible for everyone to meet their older avatars. so how is researching other ways that can help make saving easier? recently we're exploring, asking people if they want to save just one more penny on every dollar they are. and that feels easier than asking them to save another percent or another 2 percent

. and it's a little more concrete and we're finding success with that. so that's another strategy. another sort of tactic that governments or policy organizations could use, or banks to try to convince people to do more, but doing more can be insurmountable task. despite new savings tactics, the current cost of living crisis means putting money aside is out of reach for many on an airplane they, we say put on your own mass before you put on the mask of others in the same way. take care of yourself right now, because if you don't, you're not going to be able to mask the resources to help defeat yourself. at the beginning of this video, we describe the retirement crisis as the slowest moving financial crisis of our time. what the experts we spoke to reveal does that despite its leisurely development, governments have so far not solve the problem. or we actually have no way to look on to say, oh, they go to rights. and we can solve the problem because each these whole stalk

inexpensive problem i need to, we recognize that jesus and expensive problem and all prepared to pay for it. then nothing is going to be done. and he's actually going to be worse. instead of raising money to both sir, retirement budgets, many governments are cutting costs. the main answer to policy makers is come up with is that we should work longer. that solution mean some will be less behind human bodies in terms of what we expect from a rich economies. a want to be able to retire, to control the pace and concepts of your time. and not dying your screening die on the job or the only retire when you're, when you're sick. but it's also causing optimism. i called that work capacity is excellent, assume a dividend. these healthy so they can contribute to that kind of. because

governments have failed to act on time, it's partially on people themselves to make better decisions for the future. part of the difficulty here is that really in a nutshell, we have to make sacrifices today for some benefit that won't accrue to us until a much later period of time. the world's richest countries are facing historic demographic change. now some worry that the cornerstone of the modern welfare stage is at risk other a seat as a logical re shaping of our working lives. one thing we do know, our golden, yours might be a lot less leisurely than we have come to expect and that's it. from this episode of business beyond, if you like what you see here, check out one of our other videos. a good place to start would be our video and the race to a dominance. on the

move, the private companies are ready to go off the move in safety. he is the has the gun again, but this time it's not just about so short. we've everything the moon has to offer as big money at stake, made in germany next on d, w. 3, this old why max? i love telling tales of true diverse to the best. so home all submit. the graces, not in 45 minutes on d, w. we are all set and we're watching closely we

all seem to bring you the story behind the news. we rolled about unbiased information all 3 months. done the the they say the devil was proud to, but soon. so we'll astronaut to the fast and label is helping design the spacing. vanessa is new mission to the moon. these trips won't just be the proverbial leap forward for mankind. they'll also bring major business opportunities to the us.