LONDON -- A flood of articles in the European media recently has warned about the growing problem of paying pensions as the populations of European countries age and birthrates decline. For Japan, this problem looks especially acute.
The British claim that they are in a better position than continental European countries since many of their pensions are funded through company and private schemes involving money invested in bonds and equities. Old-age pensions operated by the state on a "pay as you go" basis (deductions from the earnings of those working pay for the pensions of the aged) are hardly adequate for survival.
While the British birthrate by itself is insufficient to maintain the present population, it is not as low as in Spain and Italy. Moreover, the flow of immigrants into Britain is higher than in most other European countries -- although this is also a cause of social tensions.