How to save a million

There is an utterly misconceived view that the present pay-as-you-go (PAYG) pension system can be supported indefinitely and is, indeed, superior to funded alternatives. It is a straight transfer system, usually a double transfer system that redistributes from the young to the old, as well as from the rich to the poor. In funded schemes, by contrast, money is invested by current savers, accumulates over the years and should provide the basis for their own future pension needs. PAYG was popular when pension schemes were first established for political reasons. A funded scheme will take time...