But the private pensions don't have to fund every retired person, just the people putting the money in.
So? Either it's a similar proportion of the total population in both cases, or it's a pyramid scheme.
That is, it's an investment
So they try to tell you, yes. It is a gamble on the rate of increase in the stock market being significantly greater than the rate of increase in inflation, and the dividend on accumulated capital being high enough to take as income without depleting the capital itself, in effect.
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Date: 2004-03-23 11:38 am (UTC)So? Either it's a similar proportion of the total population in both cases, or it's a pyramid scheme.
That is, it's an investment
So they try to tell you, yes. It is a gamble on the rate of increase in the stock market being significantly greater than the rate of increase in inflation, and the dividend on accumulated capital being high enough to take as income without depleting the capital itself, in effect.