This Psalm, like many, is written from two perspectives. It is written from man’s perspective and God’s perspective. God speaks of His covenant with King David. He says, “I have sworn to David my servant. I will establish your seed forever and build up your throne to all generations.”
Jesus will return to the Earth and become King of Israel one day. His human lineage includes David. Jesus is humanly related to King David.
The Bible calls Jesus’ Kingdom on the Earth the Millennial Kingdom. The Millennial Kingdom is a 1000-year period. People will still reproduce during this period. New generations of people will be created until the end of this 1000 year period. As the Psalm says, Jesus will be King of all these generations.
After this comes the ‘final throne judgment’ of God. God will judge all people living and dead and determine their final destination, Heaven or Hell. All who didn’t believe in Jesus will stand before God to hear His judgement.
Therefore, if one wants to avoid this final throne judgment, he or she must believe in Jesus Christ now. One must not delay, because the time is short.