3 ms·
No, it is because pensions are scaled (yearly) proportionally to wages (simplified, the actual process is more complicated)
by myrmidon 5mo ago
No, it is because pensions are scaled (yearly) proportionally to wages (simplified, the actual process is more complicated)
- triceratops 5mo agoPeople automatically get a higher pension because they make more money? Without actually paying more into the system? That's an obviously flawed and unfair system, bound to fall over no matter what.
- myrmidon 5mo agoWorking people collect points each year based on their income relative to the average (this is proportional to how much they pay). Retirees then get paid based on how many points they have. Both the worth and the "cost" of those points scales with average income every year. This basically autocompensates for inflation and rising wage levels, but decreases in population size are problematic.