This is a development of the original idea suggested by my friend Greg Shirakyan (who has since moved on to building Photographer Robots) on a fair and self-sufficient system of social security, and it gives investing in one’s children a whole new meaning. I have thought of many details of this system that would make it more acceptable for more egalitarian part of the society, but describing it here would take too much space; so, here’s the gist of it:

A certain percentage of person’s income goes to his/her parents’ retirement fund (I have some ideas on how to deal with divorced/widowed parents, more than two parents participating in child’s bringing up, etc.). If a person doesn’t have parents, her/his contributions go to the social security fund from which all retired people get their benefits, just like it is today, but in significantly reduced amounts. Childless people will have to rely on that minimal payment, which I consider fair as they invested less in their children and had the opportunity to save more into their retirement accounts, their own careers, etc. Same goes for the parents whose neglectful upbringing resulted in children who do not generate enough income to provide significant additional funds for their parents’ retirement. Children who care more about their parents (as a direct result of parents caring about their children) may make additional tax-exempt contributions. A part of the fund can go to an insurance fund for parents who lost their children to death or work-impairing disability.