Monday, November 27, 2006

Define Benefit to Define Contribution Pension Plan

Just before I quit my desk, I wonder maybe any interesting news at and walaaa.. I see this headline "Dana Pensiun PNS Bulanan Direncanakan Dihapus"

A predictable move by our goverment, following his bos, called uncle sam.

I read a book called Rich Dad Poor Dad and Cashflow Quadrant by Robert T Kiyosaki arround 2001 and I still remember something that concerned me a lot is swaping pension plan. A define benefit pension plan to define contribution pension plan. The difference is, in define benefit pension plan, one who retired will still have payment in his/her pension age per month, and in define contribution, one who retired will get amount of money when he/she left the company, the money is quite bigger but paid only one time.

As many of our seniors not have entrepreneur skill because they are so busy worked :), the define benefit pension plan really save them the rest of their life, its company or goverment responsibility to support them in their pension life. In define contribution, the goverment no longer take responsible to their pension life, it their own responsible, goverment will give much money to them for the rest of their life. It will depend on financial skill of each of them to survive. Some will build or run business, but can you imagine one who should rest after their work-time is over will struggle again in business world that very different from their previous world as employee? It's not easy... especially if they never build business before. Will they still manage money as same way as they manage money when they still employed? Run out of money at the end of the month? Don't you worry about that?

Would it change our mind?
I change my mind early, I mind my own business...

And that will give me some opportunities to find "sudden-investor" for my business.