State pension is not a social guarantee—it's the largest financial pyramid scheme in human history, and it's collapsing right before our eyes.
While politicians continue to lull voters with promises of a "dignified retirement," cold demographic arithmetic relentlessly draws a line under the very concept of the pay-as-you-go pension system. Every second, the ratio of workers to retirees worsens, transforming what was once a functioning mechanism into a debt-producing machine. And here's what's truly frightening: this isn't conspiracy theory or alarmism—it's elementary mathematics that everyone from ordinary citizens to finance ministers prefers to ignore.
The question "should we abolish old-age pensions" sounded like a mad libertarian's provocation until recently. Today, it's becoming the only honest question that economists unburdened by political obligations dare to ask. Because the alternative isn't reform—it's controlled demolition of a system that has long existed only on paper and in election manifestos.
The Demographics of Death by Numbers
Let's face the truth without politically correct euphemisms. In 1960, in developed countries, there were six working people for every retiree. Today, that ratio has fallen to three to one, and by 2050, it will reach the critical mark of two to one. In some countries, including Japan, Italy, and Germany, the situation already resembles an economic horror show.
What does this mean in practice? Imagine: two young professionals, just starting their careers, with mortgages, children, and their own ambitions, must fully support one retiree. Meanwhile, life expectancy continues to rise—people now spend not ten, but twenty to thirty years in retirement. The retirement age established by Bismarck in the 19th century, when few lived to reach it, has become an absurd anachronism.
Birth rates are falling everywhere—from South Korea with its 0.78 children per woman to Russia with a figure barely above 1.5. For a population to simply reproduce itself, a coefficient of 2.1 is necessary. No immigration policy can compensate for this gap. We're witnessing not a temporary crisis but a structural collapse of the demographic model upon which all social policy of the 20th century was built.
Government Ponzi Scheme Called "Solidarity"
Calling things by their names: the pay-as-you-go pension system operates on the principle of a classic Ponzi scheme. The money you pay today isn't invested or saved for your future pension—it's immediately paid out to current retirees. Your pension will be paid by those who come after you. If, of course, such people can be found in sufficient numbers.
Any financial advisor will tell you that such a scheme in the private sector would land its organizers straight in prison. But when the state is the operator, it's called a "social contract" and "intergenerational solidarity." Beautiful words behind which lies a simple fact: you've been sold a ticket for a train that's already derailed.
Politicians are perfectly aware of the scale of the problem. That's precisely why the retirement age is raised every few years, indexations are cut, and new "funded components" are introduced that are then conveniently frozen. These aren't reforms—it's cosmetic repairs in a burning building. The system requires more and more money just to maintain the appearance of functioning.
The most cynical part is that states' pension obligations aren't included in official national debt. If they were—most developed countries would have been bankrupt yesterday. By various estimates, hidden pension debt exceeds official government debt by three to five times.
From Bismarck to Bankruptcy: A Brief History of the Great Deception
When Chancellor Bismarck introduced the state pension in Germany in 1889, he set the retirement age at 70 years. With an average life expectancy of about 45 years, this was a brilliant political move: the working class received a beautiful promise, and the state treasury—minimal actual expenses. Simply put, few lived long enough to collect.
The system was designed for a completely different world—a world of high birth rates, low life expectancy, and stable economic growth. None of these conditions are met anymore. We're trying to operate a mechanism from the century before last in 21st-century realities, and we're surprised when it creaks and falls apart.
The golden age of pension systems came during the postwar period—the time of the baby boom, when there were many workers, few retirees, and the economy grew at unprecedented rates. This was a historical exception that somehow came to be considered the norm. Today, we're paying for illusions created under completely different economic conditions.
Personal Responsibility or New Digital Slavery
So, if state pension is a fiction, what's left? The classic neoliberal economics answer is personal savings. Save, invest, take care of yourself. Sounds reasonable until you face reality: inflation devours savings faster than you can make them.
Central banks around the world print money with the enthusiasm of medieval alchemists. Every second, 4,755 banknotes are issued worldwide, turning fiat currencies into beautifully colored paper. With official inflation at 5-10% annually (the real rate is usually higher), your savings lose half their purchasing power every seven to ten years.
Traditional savings instruments—bank deposits, bonds, even real estate—have stopped protecting against depreciation. Interest rates on deposits chronically lag behind inflation. The real estate market is overheated to the limit and increasingly inaccessible to the middle class. Gold is good, but try paying with it at the store.
A paradox emerges: the state says "save on your own" while creating conditions in which saving is pointless. This isn't negligence—it's a systemic bug built into the very architecture of the modern financial system. Inflation benefits debtors, and the biggest debtor in any country is the government itself with its trillions in debt.
Cryptocurrency as the New Generation's Pension
Against this backdrop, the emergence of cryptocurrencies with a deflationary model looks not just like a technological innovation, but an existential response to the failure of traditional financial institutions. For the first time in history, people have a savings instrument that isn't controlled by the government and doesn't depreciate at the whim of central banks.
However, things aren't that simple here either. Bitcoin, for all its merits, remains a highly volatile asset capable of losing 50-80% of its value in a few months. For pension savings, where predictability matters, this is an unacceptable risk. The crypto market's cyclical crashes clearly demonstrate: decentralization alone isn't enough.
What's needed is an asset combining a deflationary nature with volatility protection mechanisms—something traditional cryptocurrencies have yet to provide. And this is precisely where space opens for new solutions.
The Future Belongs to Those Who Build It
In a world where government promises depreciate faster than national currencies, the only reliable pension is the one you create yourself. And DeflationCoin offers a fundamentally new approach to this challenge.
Unlike Bitcoin, where issuance is merely limited, DeflationCoin implements an algorithmic deflation mechanism—coins are actually burned, reducing supply. Smart staking cultivates a culture of long-term investing for periods from 1 to 12 years, eliminating the speculative component. Smooth unlocking makes sharp price crashes impossible, turning DEF into the crisis-proof hedge that modern investors so desperately need.
This isn't a call to abandon all forms of social protection. It's an acknowledgment of a simple fact: the old system is dying, and only deflationary digital assets of the new generation can offer a real alternative to government pension illusions. The future won't come on its own—it must be built today.