pension peril
Russia Takes Away Workers’ Piggy Banks
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  • Corlyss

    Rather typical of lefty tyrannies, ain’t it?

  • hooharhar

    Uh oh, prolly another glass house to throw stones at…

  • Bruce

    Did the Ruskies learn to manage a pension fund from us or did we learn from them? We both do it the same way.

    • free_agent

      Ugh, at least in the US we can bail the system out by admitting immigrants. Russia doesn’t have any unpleasant ways to save the system that they can fall back on.

      • Alexey Strelkov

        In fact, Russia has the second-biggest population of immigrants in the world. http://www.therichest.com/rich-list/most-popular/10-most-popular-countries-for-immigration/9/
        Obviously, it is not helping, so attracting immigrants alone cannot solve problems with pension funds.
        Since the problem itself is complex (aging population, less children, extensive social programs, high consumer expectations) I doubt it will really be solved any time soon.

        • free_agent

          According to the CIA World Factbook, Russia has 1.69 net immigrants/1000 population/year, which is high for a large country. The US’s rate is 2.45, which helps our pension system a bit. But if things got really ugly, the US could put its rate up to 10 or even 20 by simply letting more people in, and that would dramatically shore up the pension system. I doubt Russia can attract that many people.

          • Alexey Strelkov

            I pray that Russia WON’T attract even half of that number. Don’t forget that uncontrolled immigration solves (it is debatable if it really “solves” instead of “masks”) pension problems only in short term. No migrant wants to work for minimum wage forever and when those migrants retire, they will expect an American pension (European/Russian/etc. Of course, by that time they will be American/Russian/European themselves). So it will just continue a vicious cycle of not enough pension money – bring more immigrants – not enough pension money.
            And don’t forget that the US is not a young immigrant nation anymore. Even younger and more open nations like Australia are starting to experience problems with racism and xenophobia (which is ironic since no nation on Earth is more “immigrant” than Australia). And, of course, sudden influx of immigrants invariably creates tensions.

          • free_agent

            Of course, if you have to increase immigration to bail out the pension system, you must simultaneously revise the pension benefits (payable several decades out) to make it actuarially sound. But if you do it right, you don’t take promised money away from anyone who is currently in the country, so the political resistance is less.

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