An estimated €37 trillion is sitting largely idle across the European Union. Why aren't Europeans investing more, and what would it take to unlock that capital? #TheBigQuestion
State pensions: People pay taxes and retirees get money from taxes. How much is mostly determined by how well the country’s economy is doing.
The problem with this model is that the retirement contribution (“tax”) is based on work income which nowerdays is different from “how the economy is doing” due to a lot of economic growth happening without the involvement of working people. Investing the retirement contributiona in shares is one measure of closing that gap, raising contributions on companies profits would be another.
The problem with this model is that the retirement contribution (“tax”) is based on work income which nowerdays is different from “how the economy is doing” due to a lot of economic growth happening without the involvement of working people. Investing the retirement contributiona in shares is one measure of closing that gap, raising contributions on companies profits would be another.