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> I have a kind of private pension fund for freelancers, which, if I understand correctly, is technically already my money, so it can't be looted to fund the r
by brazzy 9y ago
> I have a kind of private pension fund for freelancers, which, if I understand correctly, is technically already my money, so it can't be looted to fund the retirement of someone who retires before I do.
Wrong.
The only difference is that your pension fund will not be "looted", it will have to cut its payouts because its investments don't yield the same returns as they did before. Inflation will do the rest.
Private pension funds and investments are no more sustainable or "honest" than public pensions.
The underlying problem is the same: the currently working population has to produce the goods and services for themselves as well as for pensioners. If they cannot produce enough of something, some people won't get that thing, and it doesn't matter what some numbers in accounts say.
- mcv 9y ago> The only difference is that your pension fund will not be "looted", it will have to cut its payouts because its investments don't yield the same returns as they did before. Inflation will do the rest. Only if the economy goes down and inflation goes up. At the moment, inflation is low and the economy is growing. My problem is not so much that I'm exposed to the whims of the economy, because that's unavoidable. My problem is when I need to pay extra so others don't have to feel the whims of the economy while I get to feel it double.
- brazzy 9y agoYou missed my point completely. It's not about the "whims of the economy", it's about demographic change. If there are not enough people to pay into a public pension scheme, then there are also not enough people to generate the profits a private pension scheme needs.