Unforeseen consequences of compulsory investments using government’s pension fund must be considered
11 September 2019
The ruling party would do well to thoroughly consider the unforeseen consequences of its intention of using the government's pension fund for certain compulsory investments.
Policy directions usually start off with honourable intentions, but the unforeseen consequences are often overlooked. The FF Plus is, thus, calling on the government to take any possible unforeseen consequences into account and not to put it off until it is too late and the damage has already been done.
Investments in development assets are of the greatest importance for economic progress and job creation. We must, however, learn from past mistakes. The National Party did the very same thing with the government's pension fund and by 1994, there was nothing left.
History will repeat itself. Pensioners are going to lose all their money in this gamble. The fund will lose its secure financial footing as there will be a sharp decrease in investment growth and investors will become impoverished. As a result, members of the fund will have to work more years and contribute more money so as to ensure meaningful provision for their retirement.