From the perspective of governments, Covid 19 is too good to be true. The left has set up a perverse incentive, having to pay for both your health care (where you consume the vast majority of lifetime spending at end of life) and your retirement. It benefits government for you to die sooner, and in a big way as they save in both health care and pension costs.
China has an additional problem with their one child policy. The pool of younger workers has to support twice as many older workers amplifying the problem.
Their current systems to pay for senior health care and retirement are Ponzi schemes that require more new workers to support those that came before.
The solution is to allow people to keep their own money, invested in approved vehicles, but controlled by the individual and not the state. Imagine that 14 percent of your lifetime earnings in your pension account for you to access at retirement. An average worker would have a multi million dollar nest egg, and could live on the interest alone, and the principle could be willed to their heirs.
This solution eliminates the perverse government incentives and enriches and empowers the individual, and that means it will never happen.
I got laughed at by friends for suggesting this back in February. Over the weekend one of them apologized to me and said it’s looking more and more like a possibility.
From the perspective of governments, Covid 19 is too good to be true. The left has set up a perverse incentive, having to pay for both your health care (where you consume the vast majority of lifetime spending at end of life) and your retirement. It benefits government for you to die sooner, and in a big way as they save in both health care and pension costs.
China has an additional problem with their one child policy. The pool of younger workers has to support twice as many older workers amplifying the problem.
Their current systems to pay for senior health care and retirement are Ponzi schemes that require more new workers to support those that came before.
The solution is to allow people to keep their own money, invested in approved vehicles, but controlled by the individual and not the state. Imagine that 14 percent of your lifetime earnings in your pension account for you to access at retirement. An average worker would have a multi million dollar nest egg, and could live on the interest alone, and the principle could be willed to their heirs.
This solution eliminates the perverse government incentives and enriches and empowers the individual, and that means it will never happen.
I got laughed at by friends for suggesting this back in February. Over the weekend one of them apologized to me and said it’s looking more and more like a possibility.