| Popis: |
The ageing of the population has raised questions about the viability of financing pensions in pay-as-yo-go (PAYG) systems. If the number of retired persons per worker increases and if it is desirable to keep pensions at their historical level or in proportion to past wages, then the contributions per worker have to be increased. One may fear that the workers will not accept the increased burden. Some economists have therefore proposed funded pension systems as an alternative way of financing pensions. But insofar that ageing is due to an increased life expectancy, the fraction of the wage to pay for the same pension has also to be increased in a funded system. However, when workers save on an individual account in a funded system, the pension rights are better defined in funded systems than in PAYG-systems. Better defined rights give better incentives to contribute for the pensions and to sacrifice consumption as a worker for providing consumption when retired. |
