Pensions calculations off by a huge margine

The idea behind a pension is that you've saved money while working, and it was invested, and then when you're retired: you get your savings back, with interest.

Leaving the interest part aside for the moment, let's say you've worked from graduation around age 25 until a retirement at 65, or 40 years.

Each year you're paying in, and then when you retire, you're expecting to live until maybe 85, but for game's sake, let's say 95, or 30 years.

You should be able to withdraw 4/3 of your yearly contribution, and the money would last the rest of your life. That's just the principal amount.

But let's say we want to make sure there is enough in the event the person lives an unexpected 40 years into retirement. Then they would draw down at a rate of 2.5% of the original balance, and the fund would last exactly 40 years.

This offsets the fact that the Pension Fund has people still paying in while you're retired.

The way that it is set up in the game: the pensioners never even get 100% of their interest payments, only 60% of that, which is currently 0.01%, so their ROI is 0.006% / 2.5%, or about 1/400th of what they should be getting with 0 interest.

They would have to live 16,000 years to get their money back, without interest.

The pension system, in the game has been ignored and broken for many years now, it adds nothing to the game and doesn't function. There is more interesting opportunities in the "investment fund"

Note no matter country size pretty much all countries have equal pension funds, home values are also broken and meaningless.

You could set up your country to have a health index just high enough for the average person to love to 65 and then die, saving you the pension cost.

years ago, some one figured out how to manipulate the pension fund. the GM set it to as it is now, so that no one would gain an advantage

If they are not getting their money back: the fund should go away.
As it currently stands: it is just a drain on the country.

I am not sure how one would manipulate the fund?
Any money it pays out comes from money paid in.

Sounds a bit like that scam where you infiltrate a bank by getting a position as a clerk, then they pay you week after week for showing up and doing simple tasks.

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I am not sure how one would manipulate the fund? -JD<!-/Quote-!>

The game is older(-ish) than most of the GM's current involvement. Their are allot of easter eggs in this game.