I also think I will get the annuity to have a base with AVS that will help me to enjoy a safe spending to cover the basic costs.
I also think that from 65 yo until 95 I won’t be as sharp as today. You will physically slowly deteriorate and your mind may as well. If you include the fact that you may not understand and trust this future society.
I can see my grand ma turning 98 yo this year and she needs assistance from the whole family.
No one understand the market or have time to balance a retirement investment.
It will be another admin task to do. Connect to IB, sell xx VT shares every month between 2 doctors or dentists appointments.
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your kids or a financial advisor could do it for you.
I think if the PF truly is managing the fund for all participants including realistic actuarial projections then all well and good. If the PF is acting as some kind of ponzi scheme with no ability to stop paying excessive amounts to current retirees at the expense of current workers/future retirees, then that is not so good.
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The pension funds I know all had average coverage well above 100% and took long-term measures to keep it sustainable.
I’m not sure yet whether to take the annuity or cash-out, it’s too many years ahead. For now, I’m paying in and might cash-out early if return gets less than what’s paid on a mortgage.
Couldn’t agree more! But unfortunately what you are describing is exactly what is happening in the 1st pillar (AHV), and even more so now that the people accepted a 13th payment. Ponzi, here we come!
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