Finally, while the feasibility of such a scheme needs to be studied in relation to the various existing national pension systems, it is worth noting not only that it might provide the needed smoothing of pension funds returns, but, more importantly, that the scheme would also put the burden of aggregate financial risks due to events that cannot be hedged at a cohort level within a truly intergenerational exchange framework.
Obviously, this would call for the introduction of measures to limit the burden on future generations caused by high and rising levels of public debt. 5. We need cheaper and safer pay-out products  An adequate level of pension wealth at retirement is necessary but not sufficient to guarantee adequate living standards during the retirement years.