In research conducted on behalf of the IMF, the World Bank, the European Commission and the Organisation for Economic Co-operation and Development (OECD), CSIS has uncovered a depressing economic future for our populations. The findings show that, over the next 50 years, the portion of the population over 65 is expected to double in most industrialised nations. At the same time, the birth rates are expected to remain significantly low.

By 2050, the CSIS predicts that over 65s will represent 32% of the population in Japan, 22% in the U.S. and 29% in Germany. This rising retiree population, combined with the associated fall in the number of those working, could generate fiscal burdens over 20% higher than previously expected.

According to figures from the OECD, the potential economic growth rates are expected to fall to 0.5% in Europe, 0.6% in Japan, and 1.5% in the US between 2025 and 2050. This poor economic growth is one factor, but as CSIS point out, the future of pension funds is probably more of a worry. In this sense, the findings show that, although cash is expected to flow into funded pension plans over the next decade or so, the plans will probably have net outflows by the mid-2020s.