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“The government is preparing a banquet for 300,000 people, but inviting 3 million to partake,” said pensions expert Alberto Bonadona. “It will collapse.” Jacob Funk Kierkegaard, an economist at the Peterson Institute in Washington, says he knows of no other country lowering its retirement age at a time when higher life expectancy is burdening national budgets with pension obligations. “
Politicians are the same everywhere. It’s all theater. Nationalize this and that just before an election. “We need security in these times of peril.” Newsflash! Times are always perilous. Always. The Bolivian government is going to use their social security fund in the same way that the U.S. government is using theirs; as a credit leverage tool. Governments need to get out of the business of “saving” their people. Let the people rely on themselves for once.
The government is seizing the Bolivian retirement savings (401k in America; RRSP in Canada) and that’s akin to raiding your bank accounts. What’s even more significant, is that what’s good for the Argentinian government will be viewed as a good option for the Canadian and American governments (more so the Canadians) We’re here to forewarn our readers that their retirement plans are not safe.
Bucking trend, Bolivia lowers retirement age to 58
LA PAZ, Bolivia (AP) – Bolivia enacted a law Friday lowering the country’s retirement age to 58, bucking a global trend in which countries push people to work longer to counteract the burden on national treasuries of rising life expectancy.
Critics say the law, which also nationalizes the pension system and generously extends coverage to the poor, is overly ambitious and unsustainable.
Leftist President Evo Morales signed the bill surrounded by members of the powerful Bolivian workers federation, which helped draft the law.
Bolivia’s current retirement age is 65 for men and 60 for women.
“We are fulfilling a promise with the Bolivian people. We are creating a pension system that includes everyone,” Morales he said at the signing ceremony.
The law, which takes effect in a year, also extends pensions to the 3 million people—60 percent of the working population—who labor in the informal economy as everything from street vendors to bus drivers.
“Evo Morales thinks about the poor people, so they can have something for when they get old,” said Juan Quispe, 45, a father of three without a pension who sells ice cream on the street outside the National Palace.
What happened to Argentina?
In the year 2008, Argentina nationalized and seized private pension funds. According to AFP, the measure, a flashpoint of controversy since Kirchner last month announced her intent to nationalize 10 bank-owned pension funds to protect retirees from the effects of the global financial crisis, was approved by a 46-18 vote in the Senate. Kirchner defended the plan at last weekend’s G20 summit in Washington, saying the 1994 privatization of Argentine pension funds was responsible for “42 percent of external debt” and played a large part in Argentina’s 2001 default on its international debt obligations.
Retirement will become more of a joke as the years go by. Does Germany’s retirees of 2029 really expect to get money that’s worth anything at age 67? An aging and growing population, combined with reduced availability of natural resources will gut what’s left of today’s “consumer economy” to the point that pension system investments will be worthless. This is guaranteed to happen. Due to the characteristics of today’s economy, the only people maintaining or increasing their weight are the very rich; everyone else is progressively getting poorer. The young of today are fed the dream that they will retire in guaranteed absolute luxury as long as they get into lots of debt for a degree or more and they get a huge mortgage for a house since house prices go up by 20% every year forever, right? We should tell them, “don’t every expect to retire; plan accordingly.”
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