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Technically all €300 of your contribution goes to fund current pensioners, regardless of how the pension is structured. The idea that you are setting aside mone

Technically all €300 of your contribution goes to fund current pensioners, regardless of how the pension is structured. The idea that you are setting aside money to pay for your own retirement is an illusion. Money is just a proxy for labor, and you cannot transport your own labor into the future to take care of yourself when you are too old to work. In reality, young people must always take care of the elderly, and population decline will be a problem regardless of how much the pension funds have saved up. The question of savings is actually a question of monetary policy: if the flow into the pension fund is greater than the flow out, this creates deflationary pressure (except in whatever assets the fund invests in) and vice versa.

kazen44 5y ago
> In reality, young people must always take care of the elderly. this in and of itself is not a problem in my opinion. The problem is the financial and economic allocation is not going to those in need in society, but those who have amassed massive amount of wealth and use it to create massive hoards of wealth, with a govermental system that makes them to big to fail. Having massive wealth changes the rules of the game completely. You can legaly dodge taxes if you are wealthy, which creates even more wealth. People seem to think the labour market and capitalism is like chess, in which makes the right choices can lead to a wealthy life, but for the vast majority this is not the case. Most people are stuck playing poker with very bad bets instead.