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Assuming you're talking about a social insurance plan like Social Security, that's not saving for a pension and never was. It is insurance against getting too o

Assuming you're talking about a social insurance plan like Social Security, that's not saving for a pension and never was. It is insurance against getting too old to work productively, which is perhaps a concept that is becoming more and more quaint as technology and medicine both improve. (Technology means that fewer and fewer people can "work productively" regardless of age, medicine means "too old to work" becomes older and older.)

Aaargh20318 10y ago
> Assuming you're talking about a social insurance plan like Social Security Incorrect assumption.
- empthought 10y ago
  Then you're really being cheated, if you're "saving for a pension you will never receive." What country/company is this?
  - Aaargh20318 10y ago
    Of course I'm being cheated, isn't that the entire purpose of financial institutions ?
    - empthought 10y ago
      They will cheat you off of interest, so in that sense, yes, but "a pension you will never receive" is outright theft if true. I don't know why you would believe that your pension would not be paid out at all. It makes no sense for any party involved; it's much better for all involved for you to have that money to spend it in the economy again.
    - dx034 10y ago
      Financial institutions are private businesses. No one forces you to have a contract with them. Current accounts are very competitive in most countries (i.e. loss making for the bank), all other products are voluntary.
- dx034 10y ago
  Since you refer to 67, I guess you were referring to Germany or Netherlands and there it is a social insurance. You don't save for your pension. You provide the pension of current pensioners (via taxes or contributions) and trust that future workers will provide your pension. In all countries where the main part of a pension comes from saving (e.g. UK, US), you will directly receive what you saved (plus interest, minus taxes). A system such as what you describe doesn't exist anywhere as far as I can tell.

Aaargh20318 10y ago

> Assuming you're talking about a social insurance plan like Social Security Incorrect assumption.

empthought 10y ago
Then you're really being cheated, if you're "saving for a pension you will never receive." What country/company is this?
- Aaargh20318 10y ago
  Of course I'm being cheated, isn't that the entire purpose of financial institutions ?
  - empthought 10y ago
    They will cheat you off of interest, so in that sense, yes, but "a pension you will never receive" is outright theft if true. I don't know why you would believe that your pension would not be paid out at all. It makes no sense for any party involved; it's much better for all involved for you to have that money to spend it in the economy again.
  - dx034 10y ago
    Financial institutions are private businesses. No one forces you to have a contract with them. Current accounts are very competitive in most countries (i.e. loss making for the bank), all other products are voluntary.
dx034 10y ago
Since you refer to 67, I guess you were referring to Germany or Netherlands and there it is a social insurance. You don't save for your pension. You provide the pension of current pensioners (via taxes or contributions) and trust that future workers will provide your pension. In all countries where the main part of a pension comes from saving (e.g. UK, US), you will directly receive what you saved (plus interest, minus taxes). A system such as what you describe doesn't exist anywhere as far as I can tell.