Foreign media: how to face the unbearable aging of the world? Legal experts’ advice——

Jean Marc Danielle, emeritus professor of the Paris branch of the European higher business school, published an article entitled “facing the unbearable aging of the world” on January 19 on the French echo website. The article introduces two “coups” that may be able to solve the problem of social aging;. The excerpts are as follows

In 2019, according to the statistics of the world bank, the proportion of people over 65 years old in the world’s population has exceeded 9%. In 1961, it was only 5%. One of the characteristics of this aging is that although it is common, it is not evenly distributed all over the world. In 2019, Japan and Germany account for 28% and 22% of the population over 65, respectively, but Kenya and Mali account for only 2%.

One of the challenges facing aging countries is how to protect the pension system against the background of stagnant economic growth caused by aging. In France, pensions are equivalent to 14% of GDP. If no measures are taken, the relative increase of the proportion of non employed population will inevitably lead to the increase of the ratio of pension to GDP. This leads to a question: how can the less and less employed people accept the situation that their direct income from labor is compressed.

Take France as an example. In 1967, when the social security reform was carried out, the payment proportion of basic endowment insurance was 8.5%. Today, the maximum amount of social security contributions is 15.45% of wages, and other contributions can be used as supplementary sources of pension funds. It is hard to imagine that we will raise the standard even higher in view of the repeated arguments that the total amount of social security expenditure is too high.


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