‘Pension’ is a nice word for re-organising property rights

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A commentator on this blog has written:

I am glad to see someone else has woken up to the real challenge of the next decades - how will a reducing work-force supply the needs of an increasing non-working population? It’s not just a UK problem, but a worldwide one.

Let’s be blunt: most people think of a pension as their retirement income paid for from a  pool of funds. That’s the appearance, i agree. But the substance is something quite different.

Pensions are a mechanism for transferring property rights: between generations and from the owners of capital to the suppliers of labour.

That’s it. let’s not beat about the bush: however we wrap it up this is what they do.

Now, how do we want to do that? That’s the question we need to answer, and aren’t.

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