Which is why it is surprising that the first state that may suffer substantial pension cuts is one that actually has one of the world's best-funded, and most generous, pension systems.
According to the FT, millions of Dutch pensioners are facing material cuts to their retirement income for the first time next year as the Dutch government scrambles to avert a crisis to the country's €1.6 trillion pension system.
While a last minute intervention by the government may avoid significant cuts to pensions next year - and a revolt by trade unions - if only temporarily, the world finds itself transfixed by the problems facing the Dutch retirement system as it provides an early indication of a wider global pensions funding shortfall, not to mention potential mass unrest once retirees across some of the world's wealthiest nations suddenly finds themselves with facing haircuts to what they previously believed were unalterable retirement incomes.
Predictably, trade unions have already held protests and strikes this year over the potential cuts to pensions and have threatened more action if the government does not step in.
In some ways, the Netherlands has one of Europe's most generous retirement systems: at its core, it represents a basic pay-as-you-go state pension as well as employer-run pension scheme which together provide workers with about 80% of their average lifetime wages when they retire.
In other words, in making a select handful of European stockholders rich courtesy of NIRP and QE, Mario Draghi is threatening the pensions of hundreds of millions of retired European workers.
One can only imagine what will happen to Dutch pensions during the next Eurozone recession, when the ECB will be forced to cut rates even more negative in the process threatening even more pension haircuts.
https://www.zerohedge.com/economics/dutch-government-facing-unprecedented-crisis-millions-retirees-face-pensions-cuts-due
According to the FT, millions of Dutch pensioners are facing material cuts to their retirement income for the first time next year as the Dutch government scrambles to avert a crisis to the country's €1.6 trillion pension system.
While a last minute intervention by the government may avoid significant cuts to pensions next year - and a revolt by trade unions - if only temporarily, the world finds itself transfixed by the problems facing the Dutch retirement system as it provides an early indication of a wider global pensions funding shortfall, not to mention potential mass unrest once retirees across some of the world's wealthiest nations suddenly finds themselves with facing haircuts to what they previously believed were unalterable retirement incomes.
Predictably, trade unions have already held protests and strikes this year over the potential cuts to pensions and have threatened more action if the government does not step in.
In some ways, the Netherlands has one of Europe's most generous retirement systems: at its core, it represents a basic pay-as-you-go state pension as well as employer-run pension scheme which together provide workers with about 80% of their average lifetime wages when they retire.
In other words, in making a select handful of European stockholders rich courtesy of NIRP and QE, Mario Draghi is threatening the pensions of hundreds of millions of retired European workers.
One can only imagine what will happen to Dutch pensions during the next Eurozone recession, when the ECB will be forced to cut rates even more negative in the process threatening even more pension haircuts.
https://www.zerohedge.com/economics/dutch-government-facing-unprecedented-crisis-millions-retirees-face-pensions-cuts-due
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