{"id":509,"date":"2016-08-26T10:40:49","date_gmt":"2016-08-26T16:40:49","guid":{"rendered":"http:\/\/textor.ca\/?p=509"},"modified":"2016-08-26T10:43:44","modified_gmt":"2016-08-26T16:43:44","slug":"are-pensions-merely-ponzi-schemes","status":"publish","type":"post","link":"https:\/\/www.textor.ca\/are-pensions-merely-ponzi-schemes\/","title":{"rendered":"Are Pensions Merely Ponzi Schemes?"},"content":{"rendered":"<p>As one of th<a href=\"http:\/\/textor.ca\/wp-content\/uploads\/2016\/08\/Ponzi-scheme-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-511\" src=\"http:\/\/textor.ca\/wp-content\/uploads\/2016\/08\/Ponzi-scheme-1-300x209.jpg\" alt=\"Ponzi-scheme-1\" width=\"300\" height=\"209\" srcset=\"https:\/\/www.textor.ca\/wp-content\/uploads\/2016\/08\/Ponzi-scheme-1-300x209.jpg 300w, https:\/\/www.textor.ca\/wp-content\/uploads\/2016\/08\/Ponzi-scheme-1.jpg 349w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>e Canada Post unions moves to disrupt the Canadian Postal system, I think now is a great time to discuss Defined Benefit (DB) Pensions which is the main issue for the union. Most private companies have moved to a Defined Contribution (DC) system; why? DB pensions are eerily similar to Ponzi schemes moving some to call DB pensions &#8220;legalized Ponzi schemes&#8221; (where the taxpayer bails out the &#8220;last in&#8221; pensioner and the company offering the DB pension goes into bankruptcy). FiduciaryNews.com published an enlightening article on Aug 28, 2014 that dives deeper into this question:<\/p>\n<p><a href=\"http:\/\/www.fiduciarynews.com\/2014\/08\/are-pensions-merely-ponzi-schemes\/\" target=\"_blank\">http:\/\/www.fiduciarynews.com\/2014\/08\/are-pensions-merely-ponzi-schemes\/<\/a><\/p>\n<p>What do you think? Do you think it&#8217;s fair for a small group of people&#8217;s lifestyle to be funded by the Canadian Taxpayer?<\/p>\n<p>I personally do not believe this is fair, and in 1999 when I was offered the choice between DB or DC pension (the last year DB was offered at the company I worked at), I chose a DC pension. In all honesty, I would rather no pension* as I have since learned of a way to not depend on\u00a0<em>any<\/em> pension system which I talk about here:<\/p>\n<p><a href=\"https:\/\/textor.ca\/2016\/08\/avoiding-the-doomed-retirement-feeling-how-to-correct-your-investments-in-your-favor\/\" target=\"_blank\">https:\/\/textor.ca\/2016\/08\/avoiding-the-doomed-retirement-feeling-how-to-correct-your-investments-in-your-favor\/<\/a><\/p>\n<p>This above mentioned method is both responsible to other people (tax payers) and has the upside benefit of enabling\u00a0<em>more<\/em> money to people in retirement than an equivalent DB pension (assuming the person starts the strategy when they enter the workforce and let it run for 25+ years like a DB pension would do). The method has been stress tested by people who have lived on the poverty line and still were able to use the strategy successfully.<\/p>\n<p>* Pensions in the truest sense are government legislated rules to force people to save for retirement; the underlying assumption is that people are not capable of being responsible for their own future. Therefore, the government needs to step in with rules so people don&#8217;t blow their own foot off and leave the government and other people with a huge liability as people age.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As one of the Canada Post unions moves to disrupt the Canadian Postal system, I think now is a great time to discuss Defined Benefit (DB) Pensions which is the main issue for the union. Most private companies have moved to a Defined Contribution (DC) system; why? DB pensions are eerily similar to Ponzi schemes &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.textor.ca\/are-pensions-merely-ponzi-schemes\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Are Pensions Merely Ponzi Schemes?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,3],"tags":[],"class_list":["post-509","post","type-post","status-publish","format-standard","hentry","category-economics","category-investing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Are Pensions Merely Ponzi Schemes? - AnySkill Flex-Consulting<\/title>\n<meta name=\"description\" content=\"Blog post by Trevor Textor.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.textor.ca\/are-pensions-merely-ponzi-schemes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Pensions Merely Ponzi Schemes? 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