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Stop Worrying About Your Pension
There will be nothing left anyway
It doesn’t matter how young you are, retirement is always in the back of your mind. There are constant reminders that we should plan for the future, save and invest, build our 401k and all the other things that sensible people do.
Still, we do nothing about it. We just let that nagging feeling die off until it reemerges again in the form of guilt.
There is a lot of information out there about pensions and retirement but most of it is confusing and complicated. You shouldn’t really care about the fine details until you have grasped the main points.
As far as I can see, these are the options:
State pension
Don’t rely on this one alone. It won’t be enough.
The estate pension system was designed in Germany at the beginning of the 20th century when the average life expectancy was 62 and 80% of the population was below 40. So, a lot of young people working and contributing to the system and very few people retired. That’s a triangular-shaped population pyramid.
Now, people live till their late 80’s, and there are more people retired and withdrawing from the pot than workers contributing. That is an inverted shaped population pyramid and that is not sustainable.
