NOMISMA

Pay-as-you-go system

賦課方式 / pay-as-you-go — Institutions

A system where premiums paid by current workers finance the pensions of current recipients.

It is not a savings system where what you paid is returned to you. It is a transfer between generations. ⚠ Therefore, if the ratio of workers to recipients changes, either the premiums or the benefits must be adjusted.