I live close to the excavated ruins of a Roman Villa. The building took place over the course of three centuries. Each generation adding something. The end product, before the fall of the Empire led to its ruin sounds absolutely amazing to me. A life full of eating, bathing, sauna, massage, talking, walking, and pondering. Throw in some modern Japanese toilets and I would be sold. They didn't just wave a wand. Neither Rome nor Roman Villas were built in a day.
The idea of "Pensions" and supporting people when they can't work any more feels like a Roman Villa to me. An idea we now accept, even though most people don't end up having the support they require (yet). The big question is always how to pay for it. Something being a "Human Right" doesn't solve the problem of scarcity.
As the idea of Social Security spread, "Defined Benefits" was a way businesses and countries promised to look after people. The amount of the payment being linked to the number of years of service, and their ending salary. These promises obviously cost money. Many older airlines are now nicknamed "Pension Funds with Wings" because of their responsibilities to old employees.
One way to pay for this, before you can afford it, is for people who are working to support those who have retired. "Pay As You Go" means the people putting into the fund pay money to those they are supporting. This is a merry-go-round, with the problem that if you gradually get more people living longer, those who are working are suddenly having to support more and more people.
This meant many providers have shifted to a "Defined Contribution" approach. This means you know what you put in, and what you get out is independent of your salary or service. It is simply based on how big an Engine you built.
There are lots of lessons to be learned from the various ways we have approached Pensions around the world. Australia is one of the countries leading the way with its Superannuation Funds. In 1992, Australians were required to commit 3% of their earnings to these funds. This has gradually increased and in 2025 will reach 12%. Collectively, in 2018, Australians held about $2.7 trillion in Pension Fund Assets (4th largest in the world).
I believe in a Universal Basic Income. That everyone, not just those who have retired, could receive a basic amount that ensures there is no financial poverty. Something like the forests and rivers that would have been around to live off when the first Romans arrived. A starting point. Waving a wand, this could be like the Norway Oil Fund. Unfortunately, we don't have wands... so we need to look for shovels. And build.
A fully funded Community Wealth Fund could pay 150 people a UBI of $2 a day, if it earned a real (above inflation) sustainable return of 3% on a fund of $3.65 million.
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