Economics & Finance / Finance & Investment / Pensions & Retirement

Why Switching to Funded Pensions Hurts More Than It Helps: The Truth About Generational Fairness

Most people think switching from pay-as-you-go to funded pensions is a no-brainer. But what if the transition actually creates a massive, unfair burden on the middle generation? In this deep dive, based on Ingo Schroeter's groundbreaking analysis, we expose the hidden costs of pension reform. We break down why a Pareto-optimal transition is impossible, why the 'double burden' on the transition generation is unavoidable, and how even funded systems are not immune to demographic shocks. Discover the three reform scenarios tested for Germany and why cutting pension levels might be fairer than you think. This is not about politics—it's about the math that decides who wins and who loses in the fight for retirement security.