actually yes, most big pots of money become poorly allocated (from graft, ossification, or whatever), whether via government, market, or some other mechanism. u

actually yes, most big pots of money become poorly allocated (from graft, ossification, or whatever), whether via government, market, or some other mechanism. under uncertainty (which, in the real world, is always), we're better off having 10 relatively decoupled, medium-sized pots over 1 large, more easily corruptible pot, in all ways that matter to a society and economy (not so much to politics, the quest for power, though). the pensioner has no idea how long they'll live, so the amount of money to save for retirement is uncertain, as is the returns on investment to meet that need. this future risk is transferred to others, as the pensioner does nothing to mitigate them, the company through its pension plan does. risk transference is a key ingredient of adverse incentives (e.g., principal-agent problems).