Political Stress and the Sustainability of Funded Pension Schemes: Introduction of a Financial Theory

This study introduces multiplayer game in the modern pension market. Particularly, this claims that low earners and high have different interests when playing funded market scheme. differentiating is enabled by avoiding entire society as a single earning cohort. using financial position, demonstrates socio-economic anomaly system, which favor of high-earning cohorts at expense low-earning cohorts. realized lack insurance exposure to systemic risks. Furthermore, could lead re-reform back an unfunded scheme due mostly political pressure. found minimum guarantee rebalance mechanism for anomaly, increases probability sustainable Nowadays countries try balance between social expenses awaking markets, one may find theory highly relevant. It obviously cases where targets meat equilibrium here they are same side. Specifically, it argued implementing with intra-generational, risk-sharing most efficient way reduce effect abnormality.