Pensions? More Like Ponzis.

I am done with my pension plan. And here’s why you might do the same.

Embracing Discomfort.
2 min readJun 12, 2024
Photo by PiggyBank on Unsplash

Here’s the pitch: Pensions are the retirement saviours in our financially regulated world. A neat tax break, employer match, a pot growing until we hit our silver years — sounds dreamy, right?

I bought into this. Sacrificed a hefty 25% of my salary so my company could stash an equivalent into a locked pot, betting on a wealthy retirement. But the shine wore off, and I’m calling it: it’s a Ponzi.

Here’s the raw deal:

Compound Interest’s Cruel Math

  • Invest $1000 at 20% yearly growth? It’ll bulldoze a $2500 investment growing at only 10% over the same period. It’s the high growth rates that build wealth, not just piling more cash into slower-growing pots.

High Fees, Low Accountability

  • The financial wizards managing your pension skim the cream off the top, getting their cut regardless of your fund’s performance. Whether your retirement fund balloons or busts, they pocket their dues.

Diversification: The Growth Killer

  • Ever heard the one about selling winners to buy losers? That’s diversification for you. It might cushion…