TY  - RPRT
        AU  - Breyer, Friedrich
        TI  - Why Funding is not a Solution to the "Social Security Crisis"
        PY  - 2001/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 328
        UR  - https://www.iza.org/publications/dp328
        AB  - It is now a commonplace that the unfunded public pension systems of many OECD countries will run into severe financing problems in the coming decades due to a dramatically increasing pensioner/worker ratio. While this diagnosis is completely undisputed, there is still a vigorous debate on the appropriate therapy. In this debate, a number of proposals have been brought forward in particular in the last five years, which mainly consist in a (partial) transition to a funded pension system. Because such a transition is not a Pareto improvement, it is necessary to ask what can be the policy target that justifies such a redistributive move? The present paper tries to examine this question by identifying seven fallacies that are commonly made by advocates of such a transition.
        KW  - Pareto improvement
KW  - transition to funding
KW  - Social security
KW  - policy proposals
        ER  -