The U.S. pension system is expected to become more difficult to keep adequately funded as the “working-age” population is expected to decline by 2020, according to a report from Mercer.
The U.S. working-age population, defined in the report as ages 15-64, is expected to decrease to 64% by 2020, from 66% this year. It was at 67% in 2007.
“It's the proverbial pig going through the python,” said Arthur Noonan, senior partner in Mercer's retirement business, about more money being paid out than going into pension funds.
Mr. Noonan said plans are getting more expensive for a number of reasons, including an aging workforce, an increase in retirees, more people retiring early and longer life expectancy.