Improved Pension System for Austria

Austrias pension system is based on three pillars: "pay as you go" via state, via company and private investments/savings. The most part comes from the state and with the onholding demographic change, the government has to jump in yearly with additional payments to support the system. But the expected number of payments increases year by year, especially with the retirement of the so called "baby boomers". This societal problem (but with different systems) is also present in other countries like Germany.   To improve the system I recommend to add a fourth pillar, an obligatory investment system based on the income. The state should offer a default fund and banks, insurance companies and pension funds can offer their own products of which people can choose from. With this approach people can benefit from the compound interest and select products based on their personal risk aversion and preferences. Actuaries can help here by creating such a system and advertising it to the government. Afterwards, modelling, product development and risk management are tasks on which actuaries can work on in the future.  With their knowledge, actuaries can have a decisive impact on pension systems and therefore on an important topic for society.