The sad story begins when number of new entrants is very small, and in this case, the pyramid becomes bankrupt. Click Paulo Coelho for additional related pages. The last and largest cohort of participants is a loser. One can easily prove that each pyramid will ever be bankrupt. That's why organizing scheme to the characteristics of the pyramid are prohibited by law. However, traditional pension systems have been designed taking into account that the influx of "new entrants" will increase infinite, and therefore the mechanism is very similar to a pyramid. For more information see Richard Blumenthal. How to be and what to do? What is the way you can offer in this situation? Definitely have to carry the reform of pension systems. Took this way, or rather, already have reformed, Sweden, Britain and Poland. In Ukraine, in 2004 introduced a system of pension insurance, but this step will not solve all problems.
The reforms must go in three directions – the rationalization of existing mechanism for citizens pension, the introduction of individual savings accounts and establish voluntary pension funds. That is necessary to introduce the so-called "trehplatformennoy" or "triple" pension system. If we talk about reforming the traditional pension system, start by increasing the retirement age. Today in Ukraine the men retire at age 60 and women at age 55. This is a very early period, and Similar figures can be found only in France, and the women they retire equally with men – in 60 years. In all other European countries this age is higher. For example, in Germany and Spain, men and women are retired no earlier than 65 years.