Monetary policy does not only influence geopolitics but also the daily life of Europeans. “Geopolitical monetary policy”, the coordinated policy of the Fed, BoJ, and the ECB, also affects the life of ordinary pensioners and pension savers. Monetary policy such as low interest rates can be devastating to pension funds and schemes. While we have known for decades that the European Union has to deal with an aging population, zero or negative interest is something completely new. The consequences for Europeans will be drastic: pensions will be cut and the retirement age will be increased to 72 or even higher. In this Gefira we take a closer look at why the next generation of retirees will be the first after World War II not to draw their pension at 65, a generation that will be confronted with an underfunded and unsustainable retirement system. Subscribe to Gefira or download your copy.
