The $400 Trillion Problem No One Wants to Talk About

The $400 Trillion Problem No One Wants to Talk About

From Economics Explained by Economics Explained

November 17, 2025 · 17 min

About this episode

The episode discusses the looming $400 trillion global retirement gap and the challenges facing pension systems due to demographic changes.

The world’s pension promise is unraveling. In the 1950s, sixteen workers supported each retiree; today, that number has shrunk to just 2.7. This dramatic shift is straining pay-as-you-go pension systems to the breaking point. By 2050, one in six people will be over 65, yet politicians are hesitant to implement tough reforms that would require individuals to work longer, contribute more, or accept smaller benefits. Could Denmark’s approach, which ties the retirement age to life expectancy, or Sweden’s automatic adjustment model, offer a way out? Or will a staggering $400 trillion global retirement gap shake the foundations of economies everywhere? Learn more about your ad choices. Visit megaphone.fm/adchoices

People in this episode

Host: Economics Explained

Topics covered

  • pension systems
  • retirement age
  • economic reform
  • demographic shift
  • global retirement gap

Keywords

  • pension
  • retirement
  • economy
  • Denmark
  • Sweden
  • demographics
  • reform

Mentioned in this episode

Organizations: Denmark, Sweden

Places: global

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