The Pension System is a Ponzi Scheme!
Everyone feels deep down that there is something wrong with the pension system and how the elderly are being organized, but nobody can pinpoint to the cause of it. Everyone knows that they get a lot more benefit out of the pension system that they paid into it, but nobody can explain where the money comes from?
That is simple, because the pension system is a ponzi scheme, and they are fools that don't even want to hear this. They just want to pretend that it works fine, and this is how the elderly should be organized.
Now I don't mean to criticize any particular pension program, what I am saying is that all pension schemes are ponzi schemes, regardless of what country they are implemented in. They all pay out way more pensions that they get from pension contribution or taxes, that is called a ponzi scheme.
It relies on "new investors" to get into the labour market, start working, pay their taxes, pay their pension contribution, to pay for "early investors" that are already in the system, that is the definition of a ponzi right there:
A Ponzi scheme (/ˈpɒn.zi/; also a Ponzi game)[1] is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources. [from WIKIPEDIA]
This is what it is, except it is paid out later, so the early investments are invested in treasury bonds (which is another ponzi scheme), to lessen the burden on the payouts.
We see that Germany is already increasing the payout age to 69, because the ponzi is on it's last legs:
http://www.zerohedge.com/news/2016-08-21/germans-furious-after-bundesbank-demands-people-work-until-age-69
The Central Banks are all ponzi operators, even Madoff admits this, and he is a master of ponzi, one ponzi scammer surely can identify another one:
http://www.businessinsider.com/steve-wynn-attacks-fed-monetary-policy-2012-10?IR=T
Let's analyze France:
(because it has a so developed pension system according to socialists, that it's admirable, the envy of the world, well let's see in reality how admirable is)
Social Security Rate fo Employees: 14.2 %
Retirement Age: 65
Average Wage: 2912 €
source: http://www.tradingeconomics.com
So an average pension contribution is 413.504 € contribution monthly, and an individual receives 8507 € according to Wikipedia.
Now you go to work at 18, until 65 because you are a hard worker, that is 47 years (hardly anyone works this much, but let's take the best case scenario), and 564 months, and let's assume the bond pays 1-2% interest yearly.
So we have 4962.048 € yearly contribution, and over 47 years that is 233,216.25 €, with 2% interest that is 591,516.53 €.
The life expectancy is 82 years, so you will be paid out 17 years, 8507 € monthly for 204 months, totalling 1,735,428 €, yes.
So you pay in 591,516.53 € and you get 1,735,428 €!!!
IT IS A GIANT PONZI SCHEME!
(And note, most people go into pension after 35 or 40 work years, rarely anyone works 47 years, and I haven't even deducted the inflation, so at best case scenario you cost 3x more than you pay in, in reality much more, it is a huge ponzi scheme)
According to the Wikipedia ponzi scheme definition:
pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources
Yes this is what is happening indeed, with a minor 2% interest from bond interest over the years (not counting inflation), but the main money comes from the 14.2 % tax rate from new investors, and that is being distributed to old investors. It is a ponzi.
This is France, the socialist paradise, and I can guarantee you, every other pension scheme is a ponzi scheme!
Now when the ponzi collapses, many elderly will become impoverished, and probably die since they will not have the money to afford health items. Instead of letting elderly people invest their capital freely, the State forces you to invest 14.2 % of you income into a ponzi scheme. Now everyone will lose their capital and their income. The ponzi is already insolvent.
What else did you expect from the State?
