1. The so-called "pay-as-you-go" pension is by transfer.
This transfer comes from the contributors and goes to the pensioners, making them a kind of life prebendaries.
2. The so-called "pay-as-you-go" pension is opposed to the so-called "capitalization" pension.
It too can be more accurately designated: retirement by exchange of the investment service for its remuneration.
3. One of the two types of pension provides its beneficiaries with income, the other an income substitute.
The kind of retirement that provides its beneficiaries with income is that by exchanging the investment service for its remuneration. The other type provides its beneficiaries with pensions that function as income, as any tax administration is led to consider in its definitions of tax bases.
4. It is by no means certain that the potential benefits of swap pensions will be less than that of transfer pensions.
But we can expect that the potential benefits of swap pensions will be out of reach without the reforms that tip over into a full-trade economy.