2/n
Additionally, those pensions will only be there if the markets do not crash. Belgium, had pension funds before WW2. But the Great Crash vaporized those funds, and their contributors' pensions. After the war, the workers' movement pushed for a PAYG pensions systems, based on solidarity.
The Draghi report calls for moving all of Europe's pensions onto a capitalization system. Those have advantages and disadvantages. Just remember they did exist, and we scrapped them for a reason.
2/n
Additionally, those pensions will only be there if the markets do not crash. Belgium, had pension funds before WW2. But the Great Crash vaporized those funds, and their contributors' pensions. After the war, the workers' movement pushed for a PAYG pensions systems, based on solidarity.
The Draghi report calls for moving all of Europe's pensions onto a capitalization system. Those have advantages and disadvantages. Just remember they did exist, and we scrapped them for a reason.
3/n
"Even though the majority of beneficiaries want their pensions to be invested sustainably, so far we as an industry have had little to offer them. This is because solutions that deliver market rate returns and genuine sustainability don’t exist."
https://www.arketa-institute.org/resources/a-path-to-post-growth-pensions
4/n
"As an example: the Canadian Public Sector Pension Investment Board used to fully own a group of for-profit care companies called Revera Group. In order to turn a profit, companies like these drive the cost of care up and the quality of care down, making retirement harder and more expensive for older people."
https://www.arketa-institute.org/resources/a-path-to-post-growth-pensions
5/fin
"Because pension funds all over the world are doing similar things–investing in companies that can deliver “market rate” returns–they end up pushing up the price of care for everyone, which effectively devalues the pension savings they’re able to provide to their beneficiaries."
https://www.arketa-institute.org/resources/a-path-to-post-growth-pensions
