Saturday, September 7, 2013

The foreseen future of your pension

Just a quick warning, again, about the need for financial education and preparing our own future.

Of course some people still will claim that the state/government will provide.., others pray to other gods..

But even if some will start their own pension fund savings, that does not keep you save from state's greed, just remember what Argentina did not long ago, in 2008:

Today, the government of Argentina will announce the annulment of the country’s private pension system introduced in 1994. The savings funds of 12 million workers will be nationalised. With this move, the government is taking over assets worth 13% of Argentina’s GDP, significantly increasing the state’s role in the economy. The private pension fund industry, which employs 10,000 people, will cease to exist as their clients are forced back into the state PAYGO system.


Cacerolada against pension theft in Argentina

Basically they stole workers pension savings to reduce deficit, to keep on wasting money.

But you might say these things only happen in countries like Argentina, with little guaranties and long history of dictatorships and government theft..

Well, maybe that is not that clear, what about if the same happens in an EU (European Union country). Yes, just yesterday that was confirmed to happen in Poland, stealing workers private pension funds to reduce public deficit.., to continue wasting money...

Poland said on Wednesday it will transfer to the state many of the assets held by private pension funds, slashing public debt but putting in doubt the future of the multi-billion-euro funds, many of them foreign-owned.



Of course, Polish government does not call it theft or even nationalization, according to Nomura experts:

The reform is "a decimation of the ...(private pension fund) system to open up fiscal space for an easier life now for the government," said Peter Attard Montalto of Nomura. "The government has an odd definition of private property given it claims this is not nationalisation."



But, as a matter of fact, it seems in the EU, Cyprus banking security, Polish pensions, Spanish unemployment....  we are not that far from Argentina. So, be smart, think about your future. Be very aware of pension funds, maybe some minor fiscal benefit now does not compensate future legal changes (state thefts), and it is worth thinking about funds in countries like Switzerland...

May the luck be with all of us...