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Isn't the case for most people outside the US government funded pensions essentially just "the Stock Market but with extra steps"? If the market crashes pension
by Nasrudith 2y ago
Isn't the case for most people outside the US government funded pensions essentially just "the Stock Market but with extra steps"? If the market crashes pensioners are going to have a bad time.
- sgu999 2y agoIt's apparently called "pay as you go" in the english jargon. Here we call it "répartition" in opposition to "capitalisation" [0]: active workforce directly pays for the inactive population, in exchange for a future right to a pension. Which is roughly what you do with capital-based pensions, but with less variability. [0] https://de.m.wikipedia.org/wiki/Umlageverfahren https://de.m.wikipedia.org/wiki/Umlageverfahren