Check out our latest investment property in Detroit, 9934 Warwick Street, with estimated average annual returns of 11.1% - 13.1%*
Invest now before it's too late!

Learning Center > News

Savings as a Complement to the Retirement System

Dec 14, 2018


A report published by the Inter-American Development Bank (IDB) shows that Latin America is aging faster than other continents. By 2050, one in five people will be older than 65. Not only will more people be retired, they will also live longer.

If we add to this equation that the birth rate is falling, it results in a population with the highest aging rate of the planet. Today there is an average of nine workers to support a retiree, in 2050 there will only be three workers to support him or her.

One of the possible solutions is to increase the size of the economy, and one of the ways to make a sustained effort to increase the presence of women in the labour market. According to a study by McKinsey, closing the gender gap in Latin America would generate by 2025 an additional GDP of 2.6 trillion. Greater economic activity generates greater contribution capacity to the social security system, which improves the equation for the retirement system. Women have a higher life expectancy than men, spending an average of 5 more years in this system. Financial education, especially in low-income sectors, is one of the most important challenges that governments should have in relation to the issue of female inclusion and its contribution to the economy of a country.

At the private level, saving is another way out of this dangerous equation, it accounts for between 70% and 90% of the countries in the world, being Latin America a region with a very low rate compared to other countries, less than 20 % compared to 35% in high growth regions. Only 16% of savers do it through the financial system, compared to 50% in advanced countries.

Reality shows that the lack of instruments, the exchange instability and the change of rules in the economy are not an excuse to make a cultural change of scale. Educating our children, at an early age, in the culture of saving will give them more weapons to deal with a difficult system to maintain in the long run and turn them into architects of their own destiny without necessarily having to depend on the unsustainable retirement system in the long term.

On the other hand, the evidence in the world shows that historically, an increase in savings rates is directly related to economic growth, provided that the increase is accompanied by increases in productivity (in other words, investment). Not only should you save, but you should also take advantage of those savings. This return generates a ‘positive cycle' since a higher return results in a greater incentive to continue saving, which generates greater productivity. This higher productivity also leads to higher growth and an economy with greater capacity to sustain, in the last instance, an increasingly large segment of retirees in our region, as well as obviously a private support for the retirement of each one of us.

Properties Open for Investment

5-2 Wohnresidenz Zogernitz, Vienna

5-2 Wohnresidenz Zogernitz, Vienna

Vienna, Austria

Estimated Avg. Annual Return*1.8% - 3.8%

Total Invested€ 334,000

44% Funded € 334,000

Target € 760,000

Invest Now
9934 Warwick Street, Detroit

9934 Warwick Street, Detroit

Detroit, United States of America

Estimated Avg. Annual Return*11.1% - 13.1%

Total InvestedUS$ 64,637

76% Funded US$ 64,637

Target US$ 84,550

Invest Now

Sign up to receive new property alerts before they become available to the public.

*This amount is an estimate and should not be considered a guaranteed figure. The value of your investment can go up as well as down. In most circumstances the maximum duration of an investment will be 4 years.

Register to get early access to our new opportunities
Register Now