Why is it necessary?
This system is necessary for several reasons:
- Firstly, that your pension would not depend so much on the effects of the aging society. Now the same “pie” made of the contributions paid by present taxpayers has to be divided among the increasing number of elderly people.
- Secondly, you will become personally interested in accumulating for your old age and your pension will not depend on the population of future generations and their honesty when paying taxes. You will know that the more contribution you will pay to your account, the more you will accumulate for you old-age.