»This sentence is true – and let me spell it out to you: your pension is safe.«
– Norbert Blüm, CDU [Christian Democratic Union]
German Minister for Employment and Social Welfare, 1994
It has been clear for a long time that the statutory provision for old age is no longer sufficient. The state pension scheme may possibly collapse completely – even though people have paid contributions to it their whole life long. The »inter-generational contract« ceased to function a long time ago. This problem is a result of the system and cannot be solved in the old system.
In the Natural Economy of Life pension provision is assured through the basic income alone. Creation of money takes place in the here and now. We do not need an inter-generational contract, for old people contribute just as much to the good of all as everybody else.
It is also to be expected that people will be more healthy than today on account of the more favourable living conditions. Many people will still be fit and spry at an advanced age and enjoy taking on tasks. The strength of the active basic income is also shown here: while today a lot of people fall ill shortly after retirement because they no longer feel needed, unconditional participation guarantees everybody the right to contribute to the community in accordance with their inclinations and abilities. There cannot be a better health provision for elderly people than this.
So people will remain active in accordance with their inclinations and abilities up to an advanced age. Their basic income is only the foundation that assures their existence. Like everyone else they can also use their diverse skills to earn extra money – naturally tax-free!
If the money is not enough, some people may have granted interest-free loans in their young years which will provide additional income.