Today, most countries in Western and Eastern Europe have a solidarity pension system, known as the intergenerational contract, in which the current younger generation supports the older generation, and in the future the new younger generation will support the now elderly younger generation. This system was introduced after the Second World War, when there were four workers for every pensioner. But the ratio of working people to pensioners is already approaching 1:1. And it is predicted that by the 2030s there will be more pensioners than workers.
In such a situation, you do not need to be a prophet to realise that the pension system as it stands is simply not sustainable. But most people do not want to think about it and do something to ensure that their retirement years do not turn out to be hungry.
Most people live as if tomorrow will never come, as if they will always be young, competitive in the labour market, able to find a job easily and adapt to new conditions. They live according to the principle that if you have money, you have to spend it. And it is necessary to spend all the money they have earned in their lifetime.
Given the current situation, it would be wise to start looking after your own retirement. And when should you start, you may ask? The answer is simple: as soon as you start earning money, you should start saving and investing it. In order to have a safety cushion against various unforeseen situations during your lifetime and to have a decent standard of living in your old age. With the money saved and grown from investments, you can, for example, buy an apartment, rent it out and not be 100% dependent on the state pension.
