If pensions where not mandatory you would be almost right. But pensions are mandatory, the state will invest the money upfront and earn from those investments. It's just a way of making you pay more, and then give you back less. Another hidden tax to pay whatever operation their incommensurate ego want to pursue.
Allow me to remind you that Churchill quote: "Democracy is the worst form of government, except for all the others". Or in this situation, pensions are the worst form of retirement savings, except for all the others. Political parties struggle even imagining alternative solutions, but if you found a better idea by all means please come forward and we will all vote for you! I will for sure.
Non-mandatory, private savings is a far better idea. Ah wait but now the govt doesn't have the money anymore... ops. Maybe _that's_ why they struggle, because they don't find a way of taking your money without telling you... we changed forms of government, but taxes (and hidden taxes) remain, did you notice?
> Non-mandatory, private savings is a far better idea.
As someone who reads personal finance sub-reddits I completely disagree. The vast majority of people (a) do not have the long-term thinking for long-term needs, and/or (b) have money go by them without noticing they haven't saved anything. There's a reason why "Pay yourself first." is a mantra that has to be hammered into people through education (e.g., The Wealth Barber); most folks don't get that education or don't take it to heart.
> Ah wait but now the govt doesn't have the money anymore... ops.
In Canada the government does not have access to the money of our public pension, the Canada Pension Plan (CPP ~ US Social Security).
Then make the govt pension plan opt in and make the citizens choose whether or not to have the money invested (maybe give a discount to those that do). Be transparent and track the total you already payed and what your pension will be at retirement age. Don’t change retirement age suiting your ego and fake needs, but let people decide. Don’t come up with excuses to strip some more money from the citizens, and make the government more efficient instead. How does that sound to you?
I honestly didn't notice. I know exactly what my taxes are and where they go, and I can even vote to direct them this or that way. I highly recommend such an approach.
