Old age, superannuation and the financial system

Date: 1975 Period: 1972-1989 File: PDF 1 MB, 16 pages
Author: Sir Frank Holmes
Institution: Victoria University of Wellington

The inevitability of aging and the associated need for financial support during retirement form the basis of this discussion. Retirees, by ceasing their productive labor, rely on the goods and services produced by others in society. This situation creates a social challenge: how to ensure that dependents, such as retirees, receive the resources they need. Different societies have historically approached this issue in diverse ways. In traditional and less developed societies, the responsibility for caring for the elderly rested primarily with the family and local community. In more urbanised and capitalist economies, private and charitable efforts gained importance, and, in recent times, central governments have assumed a larger role in providing for the aged. The balance between these methods is a subject of ongoing debate, with far-reaching implications for savings, investment, and the financial system.