Australia has a system called superannuation. Instead of getting you and your employer to pay into a pool that everyone pulls from, you pay into a pool for yourself, and it ends up getting invested in general ways that you can dictate. When it comes time to retire, your superannuation fund becomes your retirement.
Once I learned about this system, it became kind of self-evidently superior to what my country has.
Compared to a defined benefit government pension plan, at first glance you might always assume that defined benefit is better than defined contribution, but the problem is if you're defined benefit is significantly lower than the probable benefit of a defined contribution plan, then it makes more sense to go with the latter. Unlike a government pension plan, you own your superannuation. You can screw it up, but they can't just take the money and spend it on BS without your consent.
Once I learned about this system, it became kind of self-evidently superior to what my country has.
Compared to a defined benefit government pension plan, at first glance you might always assume that defined benefit is better than defined contribution, but the problem is if you're defined benefit is significantly lower than the probable benefit of a defined contribution plan, then it makes more sense to go with the latter. Unlike a government pension plan, you own your superannuation. You can screw it up, but they can't just take the money and spend it on BS without your consent.
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