Four decades of policies that boosted spending and steadily reduced tax rates by papering over deficits with asset bubbles are moving toward inevitable restructuring. Investment horizons and risk tolerance steadily shrink with age. But thanks to another spate of irrational exuberance, Boomers, now aged 61 to 79, face capital risk that has rarely been higher, while return prospects have rarely been lower. The retirement expectations of the masses are ripe for disappointment.

Around the world, market forces – low interest rates, longer lives, workers changing jobs – are testing underfunded pension plans. We explore how the world should rethink financial security for aging populations. The Netherlands offers one solution by taking on more risk for younger populations. Economist Teresa Ghilarducci explains why countries like the US have kicked the can down the road, while Dutch experts Adrian Rikjen and Stan Veuger highlight how a pivot toward defined contributions could make the system sustainable.  Here is a direct video link.