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This is the problem with retirement systems built on Ponzi schemes. The low birth rate has accelerated the inevitable crash. If my understanding is correct, No
by thordenmark 1y ago
This is the problem with retirement systems built on Ponzi schemes. The low birth rate has accelerated the inevitable crash.
If my understanding is correct, Norway has a system based on investment in the country's economy, in particular oil production in the North Sea. And they are not needing the same austerity measures to retirement benefits.
- hijodelsol 1y agoI assume you are unfamiliar with how pensions in Denmark work. While there is an unfunded social security part that is paid for through taxes, >90% of Danish workers have "occupational pension plans" that they contribute about 15% of their salary to. By the time they retire, they have saved on average 2 million DKK [https://www.dst.dk/en/Statistik/emner/arbejde-og-indkomst/formue/pensionsformuer https://www.dst.dk/en/Statistik/emner/arbejde-og-indkomst/fo...], so about 300,000 USD. At that time, life expectancy is about 20 years, so that is about 15,000 USD per year from individual capital-backed schemes alone. For the 60% of Danes that are home owners, this alone could probably cover all basic living expenses outside of very HCOL areas. In that way, Denmark already strikes a good balance between purely tax-based schemes (that you are probably referring to as "Ponzi") and socially detrimental schemes like a pure Austrian backpack approach (which would leave people that cannot work in deep poverty).