Originally Posted by vistabeta_2
The BA situation in Spain is imposible.After a short time, months, the company would be taken over by the Social Security agency , and forced to pay very heavy fines plus interest. The managment could go to jail in a short time for this .
The strange situation in the UK and USA with holes in the companies pension funds are unthinkable in most of the developed world.
As they say, this is not even wrong.
You have no pension fund. The pay-as-you-go Social Security pays current pensions out of current tax revenue. There is no capital funding. In effect, it's a giant pyramid scheme, which is why the deteriorating demographics are such a problem, as they raise dependency ratios. More retirees, fewer people working and paying taxes. On a like-for-like basis, the "hole" in the pension systems if you compare the capital funded corporate systems (prevalent in the US, UK, Netherlands, Switzerland, etc) with your Social Security, the hole in Social Security is infinite, because there is no savings. At all. All money that comes in is spent immediately. Even an underfunded pension scheme (the "hole" you refer to) is preferable to pay-as-you-go. In addition, most countries, including the UK, have a pay-as-you-go component to their pensions provision, which may or may not be discounted in the second and third pillar funded pension systems (as in the case here in the Netherlands).
(Pension nerd mode off
)