Friday, March 12, 2010

Patel Pursues Pensions

So the state wants to "encourage" the trustees of private citizen's retirement savings to "invest" in "development projects". So much for private property rights.

Incidentally, this is why I oppose pension funds: they significantly reduce people's power over their (implicit) retirement savings. It's almost a Law of Nature that the less power you have over your money, the less of it you will have in the end.

Here are some relevant links:

Patel to tap pension funds - Times LIVE

Patel eyes pensions trillions for state fund - Free Market Foundation
"The unintended consequences of this action are entirely predictable - individuals will stop investing in retirement vehicles, thereby reducing the level of savings in the economy, resulting in less money for genuine investments that drive economic growth."

Patel's pension plan dangerous - DA - Politicsweb
"Under Apartheid, pension funds were utilised to fund the Apartheid regime through the implementation of prescribed assets."

Uasa opposes Patel's retirement fund plan - Times LIVE
"If the state were a business, we at Uasa certainly would not have invested our hard-earned retirement savings with them."

NUMSA backs Patel's pension funds proposals - Politicsweb

Patel's pension plan 'workable' -
Economist Dawie Roodt: "Politicians are not good at identifying winners and here we have the idea that pension funds be forced to invest 5% of their savings into a politically determined project."

Well, at least we're not Argentina:

Argentina Makes Grab for Pensions Amid Crisis - WSJ

1 comment:

  1. Yes, at least we're not Argentina!

    I have posted my response at SA4L here.