The pension system is unsustainable in the medium term
Ignatius emphasized the need to move from welfare state to the Welfare Society, ie the culture of dependence on the state initiative to promote the creation of wealth. He also noted that should help the needy and to eradicate poverty and social exclusion, but it should be done to achieve votes.
With the General Health Law passed in 1986, said the president of the Bamberg Foundation, created the National Health System was not Social Security, but it overlapped but the funding decoupling SS and affecting the cost health of the State Budget.
Ignacio said that for more than four people of working age for every person in today's retirement age will move to 1.6 in less than 40 years, generating a deficit would be unsustainable and pensions reduced by 40 %.
Without being alarmist, Ignatius warned about the low birth rates and lengthening life, because the consequences are a lower economic growth, less consumption and business initiatives, increased pension expense and depreciation of assets and property widespread .
Following INE projections for 2048, the ratio of pension assets would be at 1.47 with 22 million workers and 15 million pensioners, so that pension spending will rise from 9% of GDP in 2010 to 18% in 2050.
The president of the Foundation proposes alternatives Bamberg spend less or more and enter the solutions are considered to generate more wealth, more productive and demographic trends change significantly improving birth.