81
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 15 Oct 2023
81 points (90.1% liked)
Europe
8324 readers
3 users here now
News/Interesting Stories/Beautiful Pictures from Europe 🇪🇺
(Current banner: Thunder mountain, Germany, 🇩🇪 ) Feel free to post submissions for banner pictures
Rules
(This list is obviously incomplete, but it will get expanded when necessary)
- Be nice to each other (e.g. No direct insults against each other);
- No racism, antisemitism, dehumanisation of minorities or glorification of National Socialism allowed;
- No posts linking to mis-information funded by foreign states or billionaires.
Also check out !yurop@lemm.ee
founded 1 year ago
MODERATORS
Because otherwise you run into the problem of having to get additional revenue from somewhere else.
The current problem is that there aren't enough young people working well paying enough jobs to fund pensions, because if they aren't funding them it's just an account you throw money into and then draw out of later.
You can either provide an alternative source of additional funds or tell grandma it's not your fault she put her money into a box instead of an investment vehicle to fund her retirement.
I have described a system that would have prevented the problem in the first place while still providing the actuarial benefits of pooling resources.
I am not offering a solution for how to transition from the current system where the young pay for the old.
What I don't like is the hyper-neoliberal approach where each person lives in an island and resources aren't pooled at all, because it benefits the rich at the cost of the poor.
It's still losing money though, unless each cohort is able to operate it as an investment vehicle it's no different than a generational shoebox in terms of what the money is doing while you're waiting to pull out of it.
The point of a pension fund is for the ongoing contributions of currently working folks to bring in enough new capital that people withdrawing don't feel the effects of their contributions from 40 years ago having lost value against inflation.
No, that is not how long term investments work. Try reading about the subject and improve your own finances along the way. Investments typically grow faster than inflation, so the longer the original investment was made, the more money you have today.