The Problems Underlying the Pension Scheme and Low Birth Rates Can Only Be Resolved Together – A Complex Proposal for Linking Pensions to Parenting

Abstract

This study provides a brief out line of a pension scheme based on human capital, an idea that stems from understanding that pay-as-you-go (PAYG) pension schemes should be based on the recognition of parenting, as they distribute the yield of investments into human capital. The fact that this is not the case ex ‐ plains the numerous problems inherent the scheme. Similarly to a Ponzi scheme, the promises and options offered by the pension scheme are increasingly divergent: promises are becoming increasingly in flated, while options are diminishing. The system outlined below would resolve these problems. Parenting and the pension scheme are intrinsically interrelated: the former can only be made economically profitable through the latter, as evidenced by the prevailing method applied throughout most of global history, which was only made redundant in modern times.