Abstract
In my study, I took into account the design faults of the state-funded, pay-as-you-go system and realised that its principle (created in arrears) is defective, and it is necessary to move to a new operating principle to correct it. We have to forget about the existing so-called ‘unfunded’ pension system, and the state pension system shall be explicitly placed on its real basis, human capital. This results in an automatic asset/liability matching that is currently totally missing, and we can forget about the usual debates about the sustainability of the pension system. The result of such a system would probably be an increase in the number of births compared to today, but this is not the purpose of the proposed reform, which I intend to elaborate in a separate study, i.e. how this can be put into practice.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
