College
Muma College of Business
Mentor Information
Alexander Schwartz
Description
Population aging has placed increasing pressure on retirement systems through declining fertility rates, increasing life expectancy, and rising old age dependency ratios. Although the United States and Italy face similar demographic challenges, they operate under different retirement and pension structures. This study synthesizes evidence by comparing the retirement and pension systems of the United States and Italy to evaluate how country addresses the challenges of population aging and to identify policy strategies that may improve long-term sustainability. A comprehensive literature review was conducted using Google Scholar, PubMed, ScienceDirect, and SpringerLink. Of the 63 articles screened, 40 met the inclusion criteria after excluding studies published more than six years ago and those focused on countries outside Europe and the United States. Included articles examined pension systems, retirement planning, and policy responses to population aging. The literature identified population aging as the primary driver of increasing fiscal pressure on retirement systems. Italy faced greater demographic strain, with a fertility rate of 1.24 children per woman and an old-age dependency ratio projected to increase from 37% to 64–67% by 2050. In the United States, only about half of private-sector workers had access to employer-sponsored retirement plans, contributing to disparities in retirement preparedness. The findings suggest that neither country offers a complete solution to the challenges of population aging. Instead, policy reforms should balance fiscal sustainability, retirement adequacy, and equity through coordinated demographic, economic, and pension reforms. Future research should evaluate the long-term effectiveness of integrated policy strategies as demographic trends continue to evolve.
Comparative Analysis of Retirement and Pension Systems in the United States and Italy: Addressing the Economic Challenges of Population Aging
Population aging has placed increasing pressure on retirement systems through declining fertility rates, increasing life expectancy, and rising old age dependency ratios. Although the United States and Italy face similar demographic challenges, they operate under different retirement and pension structures. This study synthesizes evidence by comparing the retirement and pension systems of the United States and Italy to evaluate how country addresses the challenges of population aging and to identify policy strategies that may improve long-term sustainability. A comprehensive literature review was conducted using Google Scholar, PubMed, ScienceDirect, and SpringerLink. Of the 63 articles screened, 40 met the inclusion criteria after excluding studies published more than six years ago and those focused on countries outside Europe and the United States. Included articles examined pension systems, retirement planning, and policy responses to population aging. The literature identified population aging as the primary driver of increasing fiscal pressure on retirement systems. Italy faced greater demographic strain, with a fertility rate of 1.24 children per woman and an old-age dependency ratio projected to increase from 37% to 64–67% by 2050. In the United States, only about half of private-sector workers had access to employer-sponsored retirement plans, contributing to disparities in retirement preparedness. The findings suggest that neither country offers a complete solution to the challenges of population aging. Instead, policy reforms should balance fiscal sustainability, retirement adequacy, and equity through coordinated demographic, economic, and pension reforms. Future research should evaluate the long-term effectiveness of integrated policy strategies as demographic trends continue to evolve.
