> capital-backed insurance-system into today's system where ever fewer workers have to pay for more beneficiaries. There is a common misconception which is tha

> capital-backed insurance-system into today's system where ever fewer workers have to pay for more beneficiaries. There is a common misconception which is that capital-based system for some reason magically relieve the current workers from feeding the elderly. Unfortunately, it can't be true; even with a capital-backed system, retired workers live on the wealth that active workers now produce, thus the capital value necessarily varies accordingly to reflect the available spare added value. So when there are lots of pensioners and few workers, the supply and demand both for capital (coming from the pension funds) and goods (coming from the workers) will equilibrate in a predictable way towards less purchasing power for the pensioners.