For the first draft solution, what does the following mean exactly: "Cashflow The fixed pension gives you more money now and less later." Are they referring to 'real' terms here?
I don't have the solution in fornt of me, but it seems like a poor explanation(maybe the surrounding sentences helped) Real terms is one valid (as in factually correct) interpretation. Another might be relative to an increasing pension. Hopefully my annotations help. (You can choose either a fixed pension or an increasing pension.) The fixed pension gives you more money now (that the increasing pension does) and less later (than the increasing pension does). Still far from a good sentence but at least it fills in the blanks.
