The History of Pensions

The History of Pensions

fiction
edward w pritchard

Pensions for the elderly developed slowly over time.

The Druids- 5th century BC
In good times a ceremony was held where a priest would drop gold, silver or intact metal swords into the sacred Lake to appease the Gods and as good luck for the coming year or a future eminent battle.
In time as elderly priests became numerous, once each year after age 50, a retired priest was allowed to dive into the sacred lake and try to salvage some treasure for themselves. No assistance was allowed and the Lake was twenty feet deep. Each Priest was allowed one dive and if he retrieved anything that was the last dive for him until next year. If he was unsuccessful on dive one, he could try one more time. If unsuccessful twice he had to wait till next year. The dives helped the elderly Priests and developed jobs during the year span between dives for diving instructors who assisted the elderly Priests with instruction on swimming under water and holding of the breath.

Germany - 1885
It was billed as an important social innovation. Government employees were given a raise and part of their salary would be held and put into a pool, managed by investment experts and a fixed sum would then be returned to each retired employee after the age of 60. The pension would last until death and would assist the pensioner with maintaining a comfortable old age.
1923- Olda was a retired postal clerk. Because of hyper inflation caused by a crippling reparations payment owed by the German government to France Olda's pension check was now virtually worthless. In time it took nearly 200 million old marks to buy one slice of bread. As recently as 1919 a loaf of bread had cost a few marks.

United States- 2015
US Government in a effort to stabilize pension obligations and allow full payments to all pensioners enacts a 40% off the top tax on all pensions received from any source. The tax is unpopular but the 40% tax allows re-distribution and insures that all pension obligations will be paid. Pensioners are unhappy as are those without pensions. Economists point out that the system works and Ricardo, Adam Smith and Schumpeter would approve of the new system.