3 ms·
Exactly. This is regulatory failure. The FTC has failed us. We've accepted it because of ever increasing retirement returns but this is the cost.
by snarf21 7y ago
Exactly. This is regulatory failure. The FTC has failed us. We've accepted it because of ever increasing retirement returns but this is the cost.
- mschuster91 7y agoAn unfortunate side effect of a purely capital based pension system - additionally, with more and more investment capital coming from pension funds, it's going to be an interesting question how the funds managers govern the companies they've invested in - will they be "silent" participants that do not vote, or will they behave as activists? And what will happen in the latter case if the interests between the funds managers (demanding profits above e.g. environment protection or social/wage responsibility) run against the interest of the future pensioners investing in the funds?
- selimthegrim 7y agoExactly which state pension funds are not evaporating at this moment?
- mschuster91 7y agoGermany. Our pensions are on a rolling system - meaning that the current worker generation pays the pensions of the pension generation (plus a bit extra cash from taxes). Downside: you need a healthy young population for such a system to be sustainable, and a combination of various factors making it harder for young parents to start families (exploding rents linked with wage depression, job insecurity) and utter xenophobia means that it will have problems in the next 20-30 years if something isn't done now.