Here are the best cities to claim your pension — yet all fall short of a relaxing retirement

Sergio Ermotti, CEO of Switzerland’s largest bank, said within the report in which while some governments were able to provide a “suitable” income for people in retirement, often the sustainability of an individual’s pension was “questionable”.

He argued in which while mandatory pensions systems only ensured a minimum income to cover basic needs “at best,” current in addition to also future retirees would certainly not be able to “rely on them if they want to maintain their lifestyle.”

The report cites three major challenges for the sustainability of pension systems. The first issue concerned dramatic demographic adjustments over the past all 5 decades. Since 1970, UBS said in which fertility rates within the OECD (Organization for Economic Co-Operation in addition to also Development countries) had dropped coming from 2.7 to 1.7 while, over the same period, life expectancy rates rose coming from 69 to 81 years of age. This kind of means in which fewer “economically active” people are supporting a growing number of retirees for a longer period.

Public finances posed another problem to mandatory pensions systems. On average, OECD nations were found to spend 8.1 percent of their GDP (gross domestic product) on pensions, up coming from 5.7 percent within the 1980s. UBS said in which rising debt levels had restricted the fiscal freedom of various governments.

Lastly, the Swiss bank said low interest rates had created a challenging investment environment for pension funds.

Ermotti concluded future retirees should not be “overly optimistic” in which the challenges domestic governments face to provide a secure retirement for its citizens would certainly be resolved quickly.

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