Intergenerational justice arises from the fact that generations stand towards each other in a relationship of obligation. Children owe their existence to their parents, and therefore the continuation of their own existence in children of the next generation. Self interest demands the constant continuation of generations – for old age pensions and for the continuity of families. The welfare state weakens this bond of obligation by transferring old age pensions provision to the state. In this process, a welfare state illusion arises: individuals overrate systematically the value of their claims to pensions provided by the state and underrate the need to give birth to future generations at sufficient numbers. They underestimate the future burdens they will undergo due to a drop of the population numbers. The continental European countries are late in shifting their pensions to capital market funds that invest in countries with a high ratio younger generations. The countries with pay-as-you-go-sytems of old age pensions overrate the degree of freedom they have in withholding from the global capital market as the market for old age pensions and they underrate the degree to which their old age pensions will be devaluated due to the decrease of population.