Twetch ·
One the biggest reasons why the government should not be in charge of paying retirement pensions, is that there is no objective formule for calculating the increased cost of living.
Each individual has a different basket of goods they spend on, which would give a different result for each. Any attempt at calculating a global CPI has a ton of biases. In the case of pensions, the age bias is huge: old and young people don't consume the same type of goods at all (think spending on technology vs medical costs).
Not only is the government-run pension system inefficient, it is also immoral. It forces the young to pay for the old, creating an implicit debt on new workers. It divides society into a war between the old and young.
The opposite is vertuous: that the old invest in the young to help them grow. This can be achieved through a stock market, where older people invest to fund the growth of companies and the economy, so that they can get dividends and capital appreciation as a kind of privately-run pension.
This model is both more efficient and also in better accordance with natural law, leading to a more virtuous and harmonious society.