[tivert]

> You can't ringfence pension payments if by ringfence you mean just store them in a savings account. Inflation would destroy the saved money completely, so the funds have to be invested. In turn those investments have to yield enough to cover both inflation and expected investment losses, whilst still yielding enough to pay out reliably over the average expected lifespan post retirement.

Or just cut to the chase, and realize the money is only a unit of exchange, and not a store of value. This idea of a society saving/investing money to pay for retirement is just nonsense, if there won't be enough people to pay the money to for job to get done.

Ultimately, retirement is paid for by spending a fraction of the current economic output, which can't be banked.

[revelio]

That's a much better way to phrase it, yes.