He calls for the end of self-delusion among politicians that the current pay-as-you-go pension system is unsustainable.
The cinema remains what it has been for the past century - a pre-timed showing of a film in a public location on a pay-as-you-go basis.
One possibly counterintuitive effect of increases in life expectancy is consequently that they raise the rate of return for pay-as-you-go pension systems.
This reflects the difference in the methodology used to calculate the pay-as-you-go asset.
Proposition 2 has an interesting implication concerning the distributional impact of a pay-as-you-go public pension program.
Reasons are threefold : these countries have large and ailing pay-as-you-go public pension systems, relatively thin capital markets and less than benchmark capital performance.
Or why paying into a private funded pension is assumed to be morally and financially superior to paying into a collective pay-as-you-go pension.
Their focus is particularly important today, as pay-as-you-go pensions around the globe face increasing financing pressures due to lower birth rates and increased life expectancies.
