Now, as you probably know, the majority of the pension budget consists of transfers from the federal budget, where the working generation supports pensioners through taxes. The PFR (Pension Fund of Russia) exists purely on paper; without transfer payments from the budget, it would be exhausted instantly; accordingly, its privatization would achieve nothing. In a stable libertarian society, it is clear how the pension system will work (private insurance, assistance from children, charity, capital income, etc.), but what should be done during the transition period before this has been created?

Bitarch (question paid in the amount of 0.01btc)

The state, by forcibly seizing money from people, does so under the pretext that it assumes certain obligations in return. In the case of pension contributions, this is the obligation of a lifelong annuity, starting from an age determined by the state. After the liquidation of the state, the fate of its obligations may vary depending on exactly how the state was liquidated.

Minarchism

In the event of a minarchist government coming to power, everything is relatively simple and predictable (and for me personally, this is almost the only argument in favor of minarchism as a transition period to ancap). For example, the transition period is described in the LPR (Libertarian Party of Russia) program, and the proposed mechanism generally satisfies me completely:

At the initial stage of reforms, all obligations of the state to pensioners and persons who have begun to pay pension insurance contributions will be fulfilled through the creation of a special State Pension Restitution Fund, to which current profits from the privatization of state enterprises and corporations will be directed. All those who made mandatory pension insurance contributions will have them returned as funds from the sale of state property (including the property of the Pension Fund of Russia itself) enter the State Pension Restitution Fund. 

Program of the Libertarian Party of Russia

Upon completion of the restitution, the LPR program envisions the liquidation of the fund and the transfer of the remnants to charity, which is an unfair and corruption-prone measure; therefore, it would be much simpler and more logical upon the liquidation of the fund to distribute the remainder equally to all citizens as a one-time payment.

Anarcho-capitalism

But no minarchism may happen at all. The moral and financial bankruptcy of the state may lead to its liquidation occurring not from the top, with payment on state obligations, but from below, from the side — yes, from everywhere people can reach, without the formation of any successor structures. In other words, state property will be partially bought up by private individuals and partially stolen by state employees at the pre-bankruptcy stage, and the least liquid assets will be scavenged by anyone and everyone once the state is actually liquidated.

How much will pensioners be able to grab for themselves at the pre-bankruptcy stage? Perhaps some land, since as difficulties with paying pensions grow, the demand for land for personal farming will increase, and the distribution of land to pensioners and “persons of pre-retirement age” during this period is quite likely.

How much will pensioners be able to grab at the stage of scavenging the remains? Working budget employees will scavenge the most because they are closer. Some of these working budget employees will be pensioners; they will get something. Non-working people will get something if they hustle, using old connections and similar tools.

Bleak? I’m sorry, I have no other ancap for you in Russia. But there is also good news. If, as the state gradually goes bankrupt, people manage to prevent a collapse into socialism, then by the time of the final liquidation of this parasite, society will already be ready: it will have developed most of the necessary institutions for ancap, primarily mechanisms for private protection and the establishment of property rights, and then the transition period will pass relatively painlessly.

Now, if the state is socialist at the moment of liquidation, then, I’m sorry, instead of ancap, you get Somalia. This is exactly the process we are seeing now in Venezuela.