[ostenning]

The solution to the encumbered pension fund is to transition to privately run retirement schemes like the superannuation scheme of Australia.

The problem with Germany today is that the social state is archaic and has not been updated for the modern world. Unsurprising when the government still uses fax and snail mail for all communication.

This of course does not fix declining populations as a whole, but all advanced economies go through population decline almost like a rite of passage now. Unless growth is maintained, the system shrinks. Ultimately politicians and economists are more concerned with this over any other social ramifications of bringing migrants into the country. Obviously a balance needs to be struck, but Germany doesn't seem to be good at moderate and effective policy, e.g swinging from being a haven for refugees to now wanting to initiate mass deportations

[ivan_gammel]

> transition to privately run retirement schemes like the superannuation scheme of Australia.

How is this a solution? Let‘s say you are a social worker or a teacher, lower middle class income. What kind of financial trickery can potentially save you after retirement if you barely meet the ends now and demographics aren’t looking good?

[ostenning]

Australians are able to fund their retirement with it, why wouldn’t Germans be able?

The main advantage that it works with both a growing population, but also a shrinking one

[ivan_gammel]

Are Australians able to fund their retirement in 2050? This is the only question that matters, because Germans can fund their retirement now too.

Investing savings via a fund is not unreasonable, but will it beat the inflation in the long term, taking into account management commissions and taxes? The answer is not obvious to me.