While many adults look forward to retirement with excitement and a sense of adventure, this life milestone comes with many financial considerations. There are very few ways to make an income in the senior years and avoid being a burden on family members or the government. Fortunately, there are savings and social security programs to help people prepare to leave the working world.
Pensions
Pensions still play a role in retirement, but they are less common now. This is due to careers being more diverse and people working for more than one company in their lifetime. In addition, companies that still offer pensions are struggling to pay out on them because of the current economy. The bottom line is under constant pressure from automation and the improvements in medicine and general health. Despite this, many people still depend on pensions to see them through their golden years. This is where blockchain technology comes in and may help to save pensions by way of special projects.
Revolution
As of 2018, there is a large discrepancy between available pension funds and what is owed to retirees. An inability to make good on pensions could lead to another staggering financial crisis, much like the one seen in 2008. Even more alarming is the difficulty the government is having in meeting its pension obligations. During the years from 2012 to 2016, the United States Postal Service defaulted on $34 billion in pension payments. Blockchain addresses these issues by working from a decentralized ledger, which aligns stakeholders and relevant data. In this ecosystem, pension aspects are in the open, making it easier to build sustainable plans. The ledger also eliminates costly intermediaries while providing choice, transparency and responsibility for retirees.
Cryptocurrency
Projects utilizing the blockchain are shoring up the failing funding infrastructure for those already retired, but they can also help millennials who have not saved for their golden years. The current generation is fearful of what may be coming over the financial horizon, but things are becoming more optimistic because of blockchain. Fewer than 66 percent of millennials have any retirement savings, but emerging plans that include cryptocurrency investments are very appealing to young working adults immersed in the technical world.
Blockchain has arrived at a time of great opportunity. The status quo between working people and retirees is under a large threat, and the technology can resolve the challenges that currently exist in the pension industry. Less cost with more transparency leads to more convenient management of funds. This moves the pension system and stakeholders closer together.
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