ImJustBayuum said:
mrstickball said:
richardhutnik said:
Wasteful things like pensions it seems. As it is now, the concept of retirement is going to get abolished, as it will be impossible for anyone to retire. All you do is unleash the market and the fallout happens.
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Its going to get abolished due to the fact that the government cannot help anyone out via Social Security. When you have a system that forces people to put money in, magically creates interest, then gives the same monies to someone else, you do not have an effective system. That is why our pension program (SS) is imploding. It was built in such a way that it would eventually come time to pay the piper. In the mean time, its destroyed a lot of potential wealth by funneling taxpayer dollars into activities of the federal government which did not create funds for the retirees, but instead created more promises by the government that it could not keep.
Look at Norway's pension plan. They have a defined contribution system that earns 14% annually for its citizens. Comparatively, America earns 2.32% and even then, that 2.32% comes from buying up T-Bills which the government itself pays interest on.
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@ bolded
OIL money & small population...they have one of the biggest capital reserve per capita in the world.
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Doesn't change the fact that we could get similar rates via defined benefit plans and investing in diversified funds. Most government employees have that kind of system. Both my wife and I were earning 7-10% APR under Ohio's public pension plan. Even if you couldn't get 14%, you could get half of that and still have an infinitely better system than Social Security.
