How Would you Like Your Pension Paid in Bitcoin?

[Fivestar4everMVP]

 So, I am some how pained, though I very much understand that there is nothing I could have done about this back, but assuming I am still working with this company, I probably would have approached the manager and asked that all my pensions be paid in bitcoin, and make my bitcoin wallet available to them, and also teach them how to do it just incase they don't know.

  Why this?, I was going through my text messages today, and came across an sms alert I received on the 30th of September, 2023, from Stanbic IBTC pension managers, the pension company that my previous company was paying my pension to when I was still working with them, and indeed, my pension balance saddened, upon the realization that if my pension balance was in bitcoin, by now, I will be a millionaire.

Short History
I started working with this company in June of 2014, and started receiving full salary from the end up July same year, the company opened a pension account for me with Stanbic IBTC pension managers in the same July, and by July ending when salaries were being paid, pension was deducted from my salary and was paid into my pension account.

I worked for this company for from July, 2014 to October 2017 when I left the company to start up my won business, so, I worked with this company for 3 years plus. When I left the company, my pension balance was around 99,000 Nigerian naira (which is equivalent to approximately $99 using today's NGN/USD exchange rate).

It will be worthy to note that back then in 2014 through 2017, a dollar to naira was between 150 Nigeria naira to 300 Nigerian naira, but today, a dollar to naira is a little above 1000 Nigerian naira.

So, I had the said above balance in my pension account when I left the company in 2017 and started my own small business, so, I stopped getting pension credit alert since I was no longer working wit the company, and amazingly, I never did gave attention to my pension balance or alerts until today when I was just scanning through my text messages and saw several text messages from Stanbic IBTC pension manager, I opened and the last text was sent on the 18th of October 2023, and I contained information of my pension account balance as of 30th of October, 2023, and behold, my balance was just a mere 114,000 Nigerian naira (approximately $114 using today's NGN/USD exchange rate).



That is, after 6 whole years I stopped paying money into my pension account, the only interest this has yielded is just approximately 15,000 Nigerian naira (approximately $15) after six year..

Absolutely unbelievable and I am really sad 😔, I just can't help but imagine that this money at the time was being paid to me in bitcoin, by now, I will be a millionaire, if not in dollars, in fiat atleast.

This is another good example and confirmation that saving fiat money in banks is the worst way for anyone to lose money, the interest is not just small, naira in itself have lost a lot of value, this 114,000 naira can literally not feed me and my family for 3 months, let alone the 15,000 naira the bank added as an interest after 6 f*king years.

If I knew then, what I know now about bitcoin, I would have approached this company, and demand that they pay me my pension in bitcoin, or don't pay me pension at all, but pay me my salary in full, and from my salary, I will create a bitcoin pension for myself.

[1714994840]

1714994840

[blckhawk]

No bro, what I'd like to happen is the other way around, to have my pension be paid in bitcoins and be able to convert that bitcoin pension fund into fiat when I claim it at my local social security branch and given my belief in bitcoin that it's going to eventually cross the million dollar price point somewhere along my lifetime, I think that it's a win-win situation for me to do that but on the flip side though, some financial advisor would probably say to me that it's not a good way to save up for your pension and I do agree, even if you have a solid belief that bitcoin will never crash or be gone in your lifetime, you can never be wrong when you're playing it safe, always diversify.

[tbct_mt2]

If a person does not plan to invest in bitcoin, hold bitcoin for a long time, receiving Bitcoin through salary or pension payment will not be cool for them. Because they will have to move their bitcoins to an exchange, sell it, lose some money for on chain transaction fee and trading fee. We have to take into account volatility of Bitcoin price too. For those non Bitcoin investors, they don't like it.

If a person is an Bitcoin investor, it is cool to receive salary or pension directly in Bitcoin. It means more if they don't have to be charged on chain transaction fee as a deduction of their salary or pension.

[Fivestar4everMVP]

some financial advisor would probably say to me that it's not a good way to save up for your pension and I do agree, even if you have a solid belief that bitcoin will never crash or be gone in your lifetime, you can never be wrong when you're playing it safe, always diversify.

Well, if you live in a country with a good economy, which ensures that the fiat currency of the country isn't losing value and purchasing power as each day breaks, then maybe that term "always diversify" could mean something.

And besides, the word "diversify" is commonly used to describe the terms "do not put all your eggs in one basket", which speaking from an investor's point of view simply means that, one should invest in different assets, fiat to me, is not an asset, and neither should one hold it for several years, and refer to it as an investment., completely makes no sense to me honestly, fiat I keep is fiat I am ready to spend immediately or few days coming, I do not keep fiat long term in my account, for it will only lose value, as well as purchasing power.

[PrivacyG]

I consider it a mistake to believe and trust a Bank gives you money as an advantage.  All the time, they take something from you in return.

It is a difficult situation.  While Bitcoin SEEMS to be here to stay we still get a lot of hatred from leaders around the globe.  You just never know.  Of course the past six years seem miraculous for Bitcoin investors.  But that is only today because we can see its history.  You do not know if the next six years will follow the same miraculous pattern.

On the other hand.  Naira is losing value.  Fiat itself is losing value all the time.  With recent inflation and tough times we get Fiat losing value more than ever before.  I do not know what advice I can give you.  If Naira keeps losing value it could be a good thing to move from holding pension funds in Naira to holding pension funds in Bitcoin.

Take care and do not suffer.  Mistakes happen and you only notice when there is a history of how things could have gone.

[buwaytress]

You're not alone. So many of us in the global South got fked over by our pensions -- though I note even in the "first world" they're not immune (just remember Greece pensioners grieving in the wake of 2010 banking crisis).

Sadly, you won't be the last. Many countries experiencing hyperinflation now and in a few decades, all those hard-earned savings for Argentinians, South Sudanese, even Turks and Jordanians, will have their value wiped out.

DCA. Not because Bitcoin guarantees (I personally think it does) but because you should spread your risk.

[Jawhead999]

I worked for this company for from July, 2014 to October 2017

Bitcoin price in October 2017 was $4K, assuming you get paid by Bitcoin at that time, you're only earn 8x right now which is $800, how you can say you will become a millionaire?

upon the realization that if my pension balance was in bitcoin, by now, I will be a millionaire.

If you think your pension funds should be deducted every year from 2014 where Bitcoin price was below $1K, your company will not think same since they will think and choose an option where they can pay you as small as possible.

[Fivestar4everMVP]

If a person does not plan to invest in bitcoin, hold bitcoin for a long time, receiving Bitcoin through salary or pension payment will not be cool for them. Because they will have to move their bitcoins to an exchange, sell it, lose some money for on chain transaction fee and trading fee. We have to take into account volatility of Bitcoin price too. For those non Bitcoin investors, they don't like it.

Well, as much as I understand perfectly what you mean and sure agree with you, let me also point out that I never said one's pension being paid in bitcoin is something that will be accepted by everyone, and if you read again, you will also realize that I never mentioned receiving salary in bitcoin, my 100 percent focus was on pension and not salary per say.

For some one like me, nothing would have been more fulfilling than receiving my salary in fiat normally, and my pension paid in bitcoin into my bitcoin wallet.

I don't know how this is done in other countries, but over here in Nigeria, funds on one's pension account cannot be accessed by the until he or she is 50 years old and above, this is only when you can asked to be paid this money, if they can lock up my pension in bitcoin instead of do it in fiat, I don't mind, after all, I have a next of kin registered who will request payment of the bitcoin if before 50 years, I am no more.

[Mate2237]

The management could only pay you if they are accepting bitcoin or transacting with bitcoin and also depends non the country and I believe country you residing does not accept bitcoin transaction and many companies obey the rules and regulations of the operating country so it will be very difficult for them to pay you with bitcoin.

And one thing you said is still confusing me. I thought pension is the retirement money paid to those who were working in a firm, organizations and institution. It is the money giving to those who could not work again bear of old age. But from the way you explain, I am really confused. They (the company) stop paying you because you are no longer working. Please tell me more on that part, I want to know something from that sentence. I thought it is the money giving to to someone after work and not when the person is still active in the company. When you are still active in the company then it is salary that you supposed received and not pension.

[Accardo]

I understand how it feels OP, but the duration of 3 years is still ok, but quite not a big duration to make you lots of money. Regarding the amount of money you've saved in your pension account. I've experienced that first hand in the case of my parents. They've been saving up on their pension account for more than 20 years and the generated amount wasn't anything if they had saved the money in bitcoin. Although, it's all on a different dimension of thoughts. Not every company would want to do that for their workers. In the terms that the worker saves the money themselves, they would have done that in bitcoin. One good thing about the banks or pension companies they'll hold the money until the specific time has reached before disbursing it. But, if you did that in bitcoin, how sure are you that the funds would be there till 3 years without being spent by you. That's in the case where you're in-charge of saving the funds. It's all good having such thoughts in mind, yet if we didn't take such choice. Then, nothing else can be done about it. Especially, when we are aware of spending the money. We all wants to be millionaires, that's why we tend to feel sad when we miss such an opportunity.

[Rruchi man]

If I knew then, what I know now about bitcoin, I would have approached this company, and demand that they pay me my pension in bitcoin, or don't pay me pension at all, but pay me my salary in full, and from my salary, I will create a bitcoin pension for myself.

If you received the pension in bitcoins, it will be worth more by now. The Nigerian economy is in a terrible state, the value that N114,000naira would have had before in 2014, is not the same value now, It has greatly reduced.

It would have been difficult to convince the company you worked for to pay you the pension in bitcoins especially when they have no knowledge of it, but it was worth trying so you even could have had the option of full salary and no pension, and then would have had more to DCA with.

As an employee, the habit of investing a percent of your fiat income to purchasing bitcoins is very encouraged, so if your employers do not accept to pay you pension in bitcoins, you will not be so worried because you are already DCA-ing.

[KiaKia]

It's risky, pension fund is like your survival money, it should be in Fiat, someone who gets pension is someone who already can't work anymore, at least under the government, I have seen old men who aren't paid their pension fee and that's all they have left to feed their family, and they suffered a lot.

If I have to advice any government worker that's going to retire very soon I will tell them to get prepared and find something they can do that can bring money at old age, with very limited stress because most times the government delays this payment, or owe them for years before paying at times, imagine relying on this for your health treatment every month?

Back to receiving Pension payment in Bitcoin, this will sucks so bad because such people can't be ready to keep their money in Bitcoin, it's very hard to come by such people, this type of money is going into bank account for personal use not for investment or holding any Bitcoin.

[franky1]

I worked for this company for from July, 2014 to October 2017 when I left the company to start up my won business, so, I worked with this company for 3 years plus. When I left the company, my pension balance was around 99,000 Nigerian naira (which is equivalent to approximately $99 using today's NGN/USD exchange rate).

october 2017 btc was worth $4k/btc
if you converted your pension of $99 to btc on that date you would have 0.02475 which today ($34.8k/btc) = $862
which yes is better then the current balance your pension has of $115

as for "millionaire". well thats a bit of a dream buzzword.. id probably guess maybe $50k by now.. not millionaire status// lets play it out

i know the dream would have been to become a millionaire by trading at the exact moments of best opportunity by taking that october 2017 0.02475:
sell at december 2017 ATH ($20k/btc) to get $495
wait for december 2018 correction low ($3.4k/btc) $495= 0.14558823
sell at june 2019 high ($12k/btc) to get $1747
wait for march 2020 correction low ($5.2k/btc) $1747= 0.33596153
sell at november 2021 ATH ($69k/btc) to get $23,181
wait for december 2022 correction low ($17k/btc) $23181= 1.36358823
which today (at $34.8k/btc) would be $47,452

yes it seems like you would be (in nigerian lifestyle value 'rich') but thats a dream no one can achieve to play the markets that precisely

dont be so hard on yourself that you are only sitting on a nest egg of $115 instead of $862 or $47452
no one and i mean this no one has had a best case event of perfect investment.. EVERYONE could in hindsight seen there was more opportunity they could have taken to maximise investment more..
emphasis no one can predict perfect conditions and everyone could have done better if they had a time machine

[stadus]

A pension fund is for security when you get old. You'll receive it from the government or a private institution on a monthly basis to fund your needs. So, I don't think we should put that at risk. Although we can say that Bitcoin is a good investment that could potentially increase the value of the pension received, not everyone is willing to take that risk, especially if a person does not have many income sources after retirement.

[famososMuertos]

First of all I understand your regret.

Now neither bitcoin nor any other investment is going to knock on the door of your house, it is about information.

So , a little flash back to your revelation:
This is a problem that has been treated since the late 70s, it became more acute in the 80s.  A global problem, un fact, it has been in the news for decades.

So people who worked for years had something as simple as a fixed term in the bank and with interest of 10-15% (+ etc.) savings plans were enough, without mentioning other financial incentives that the banks offered.

That ended decades ago, not 4.5, 15 years ago, and it is in a way a crisis of the elderly in many countries, but it has been partially solved with pension funds, trust funds, etc.

Any person must establish a retirement plan for the future, and perhaps bitcoin is a partial and not a total alternative, which is the issue in most cases, since other types of investment may not guarantee millions but stability and tranquility, so that you can have a happy old age.

Information is a good investment in happiness and is catalyzed differently depending on the country and the individual, hence bitcoin is not necessarily your 100% solution for your pension. (Imo)

[Zaguru12]

october 2017 btc was worth $4k/btc
if you converted your pension of $99 to btc on that date you would have 0.02475 which today ($34.8k/btc) = $862
which yes is better then the current balance your pension has of $115

as for "millionaire". well thats a bit of a dream buzzword.. id probably guess maybe $50k by now.. not millionaire status// lets play it out

We are missing the most important thing which is the inflation of Naira which has devalued drastically against the international exchange rates. A dollar as at October 2017 then was around 360 Naira.
Converting the pension 99000 Naira as at then will be equivalent to $275 and a purchase as at that time will be equivalent to 0.06875 which would amount to $2,392 and would today be equivalent to more 2 million naira in the Nigeria currency. Although this isn’t a super rich person but OP will be a millionaire in his local currency wealthy today. Following up your calculations it could also be $142,353 and not $47,451 if he had done it base on your calculations

Also another area to consider again is the bitcoin wouldn’t have actually been bought that 2017 but would have be bought gradually if the salary deducted was converted to bitcoin straight away from that 2014. With bitcoin relatively low then and the dollar to Naira exchange been around 150 naira we could have a very higher numbers up there.

But the question we should be asking is would OP be able to hold on to that amount until now without selling it off?

[avikz]

It seems your main issue is devaluation of your local currency. It really has nothing to do with Bitcoin investment. In your case it would have been profitable if you had invested your pension fund into Bitcoin. But that might not be the case for many others here.

 The main reason for your less savings compared to USD is that the value of naira has gone down to a great extent. Also what your calling as pension fund is not really a pension fund. You are not dependent on this money. Pension fund is something which takes care of your retired life. You can still start building one by investing in Bitcoin in small amounts and averageing out the buying price.

[Yamane_Keto]

Pension funds would really benefit if you put at least 1% to 10% of the total money that is deducted from your salary and left it in the form of Bitcoin to receive when you retire. They still prefer low-risk investments since for some people the pension means everything, but I expect It should have a good percentage of investments in Bitcoin in the future, especially if Bitcoin obtains some legal acceptability and some global awareness that there would be a US ETF or a market capacity exceeding at least 3 trillion.

[pawel7777]

That's a pretty poor return, it yielded you something between 2.5%-3% a year on average, most likely way below the inflation rate.
But it's not like you had a fortune there anyway. You might want to look around and see if you have any option to choose how your pension funds are invested. If not, you could just transfer your money to a different pension. Who knows, maybe when Bitcoin spot ETFs are approved, it will be possible to invest your retirement funds in them.

Paying your contributions directly to your wallet, whether bitcoins or fiat, would be defying the purpose of employee pension schemes. It would be just an equivalent of you getting a small rise and being responsible for your own retirement.

[abel1337]

I doubt that you would be a millionaire even in current bitcoin price. Though you would be able to earn a lot compared to the current pension money you have today. I also think that pension funds aren't supposed to be invested on any other things but as a way to survive in the future when you don't earn anymore in your current job. We all have regrets in life and one of those are the chance that we missed on investing on bitcoin or on other cryptocurrency, I myself had spent bitcoins too just to buy a latest iphone which is now unusable and can't keep up to the current technology. We still have chance to buy some, unless you still want to miss the chance again.