Why The OECD And The European Commission Should Significantly Lower Their Assumptions For Returns On Pension Funds
In pay-as-you-go (PAYG) pension systems claims are tied to the development of GDP as well as wages and salaries. This not only makes economic sense, because the pensioner’s claims are tied to the volume of goods and services available, but provides considerably more reliability. While rates of return on financial markets fluctuate drastically and unpredictably, […]