Kapitałowy system rentierski - nowy paradygmat alokacji dochodów w cyklu życia gospodarstwa domowego
Capital Pension System: A New Paradigm for the Allocation of Income in the Household Life Cycle

Summary/Abstract: The article critically evalutes the redistrubutive pension systems and proposes the construction of a capital pension system. Financing the incomes of the retirees with the contributions from younger generations' labor resources, and the central management of househjold budgets are seen as the main weakness of the stste pension systems. In order to justify the need for a shift in the paradigm of the household's life cycle income allocation, the paper analyses the household goal, resources at its disposal, its budget constraint, and the current economic activity context. Proposed changes are supprted by the conclusions derived from both the exogenous and endogenous economic growth models. The paper streses the need for a universal (compulsory) system based on an individual ownership of resources which would secure the consumption for the reirement age. Such system should be beasde on the transformation of labor resurce into the stock of capital. The labor resources, diminishing over time, would be replaced with the concurrently growing capital resources. The stste should be responsible exlusively for 1) veryfing the fullfillment of the citizen's or the resident's obligation to hold the capital stock corresponding to his age, 2) assuming residual risks to secure the minimal level of consumption for those who had lost the ability to work before they accumulated the necessary funds. The paper concludes with a suggestion for a gradual transition to the capital pension system.

• Details
• Contents