It is becoming clear that current level of social security is too high for some countries to sustain.
Besides increasing taxes for social security (as well as narrowing down rich-poor gap, strengthen society and democracy), social security level will need to be “de-leveraged” to society’s “debt/economic fundamental level” for some “over-leveraged” societies.
The question is how to do it?

People need time to adapt. And this is a new “social security contract”, people did not prepare for this new state beforehand. It would be not fair to carry out it drastically – prepare for political revolutions or even wars.
So what can we do?

My idea: “de-leverage” retirement pension scheme in gradually increasing manner based on age.
For example, assuming the society’s “debt/economic fundamental level” can support 40% of the original amount of retirement pension and the statutory retirement age is 60 years:
People aged 60 years or above will still get 100% of the original amount of retirement pension.
People aged 59 years (1 more year to retire) will get 98%.
People aged 58 years (1 more year to retire) will get 96%.

People aged 30 years (1 more year to retire) will get 40%.
People aged below 30 years can stick to 40% of the original amount or devise new “social security contract” based on society’s new vision of future.

What do you think? Any unintended consequence? Inputs welcomed.

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