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Kasz216 on 07 November 2012
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Ail said:
Kasz216 said:


Uness the pension fund goes bakrupt... in which case you lose your money.

Putting the money in the private sector... run by experts... aka privatising it.  Is the only thing that makes any common sense.

The American plan of "IOU's" was just an awful idea. 

That is my main point.


That pension fund you keeps mentionning isn't what pays for social security benefits.

The money in this recently created fund barely covers the expense of french social security in 1 year..

It was created to help covers these costs when they run over in 10 years and the principal source of funding of that fund is actually the selling of wireless spectrum to cellphone networks.....

If the amount of money that comes in every year doesn't cover the amount going out the french government will do as it has done in the past which is one of two things :

- raise retirement age which is currently 62-63 ( far lower than in the US for example)

- increase retirement contributions through taxes.

There isn't the wild disagreement on this topic in France that there is in the US. There is some disagreement but neither side is seriously promoting moving toward a private system....

 

And once again the big difference between the french system and any US system is that you know in advance how much you will get in retirement in france, it is a fixed percentage of the income you had when you were working....

Again.  You are simply making my point for me.

Though yeah, any surplus in a pay go system should go into a privatised investment fund... so said cuts never have to happen.

Common sense.